Force Motors shares on Tuesday scaled a fresh 52-week high of INR 1,718.70 on the NSE while hitting a 20% upper circuit. The gains were on the back of strong January-March quarter earnings, the commercial vehicle manufacturer posted on Monday.
The consolidated net profit of Force Motors stood at INR 147 crore for the quarter that ended March 31 against the loss of Rs 42.77 crore, the company reported in the corresponding quarter of the previous financial year. The company also reported a loss of INR 15.57 crore in the December quarter of FY23.
The consolidated revenue for the reporting quarter stood at INR 1,490 crore, up 70% year-on-year (YoY) versus INR 881 crore in Q4FY22. In Q3FY23, the revenue stood at INR 1,303.86 crore. The stock has rallied by 25% maintaining a winning streak for 4 consecutive sessions.
The small cap stock with a market capitalization of INR 2,264 crore gained despite selling pressure in the auto stocks. The 15-stock Nifty Auto index ended at 14,177.85, down 41.75 points or 0.29%. Only three stocks finished with gains. Force is not a part of the Nifty Auto index. The stock has also been an outperformer relative to sectoral index Nifty Auto and the broader index Nifty50. The 1-year returns given by Force Motors stock stand nearly at 62% versus over 22% and 12% by Nifty Auto and Nifty50, respectively.
However, the stock has been relatively volatile and traded with a 1-year beta of 1.1 according to Trendlyne data. At 1.21, the price to book value is below industry media.
The company has also declared a dividend of INR 10 per share for the financial year ended March. Force Motors is fully vertically integrated, making its own engines, chassis, gear boxes, axles, bodies for the entire product range. The company manufactures vehicles for transport — both goods, as well as passengers.
