Force Motors Soars 5% as August Sales Jump 28% Year-on-Year
Force Motors shares witnessed a remarkable 5% surge, reaching the upper circuit limit on September 7, 2023, following the company's impressive performance in August. Investors responded positively to the company's latest sales figures and its remarkable turnaround in profitability.
Strong August Performance Sparks Investor Excitement
In August 2023, Force Motors reported substantial growth in both production and sales compared to the previous month. The total production for August reached 3,032 units, surpassing July's production of 2,987 units. This increase in production was accompanied by strong sales figures, with a total of 2,601 units sold in August, up from 2,564 units in July. The company's exports also demonstrated impressive growth, rising from 227 units in July to an astonishing 675 units in August, showcasing its global competitiveness.
Investor confidence is further bolstered by the company's upcoming 64th Annual General Meeting (AGM) scheduled for September 28, 2023. Shareholders eagerly anticipate discussions on the company's performance and future prospects during the AGM.
Impressive Share Price Trajectory and Business Profile
Force Motor share price has also been on a remarkable upward trajectory. It reached a 52-week high of ₹3,663 and its 52-week low of ₹1,085.20 on March 28, 2023. Currently, the stock is trading just 34 points below its 52-week high, reflecting a surge of 223% from its 52-week low. Over the past six months, investors who held the stock have witnessed a remarkable 189% increase in its value.
This positive performance trend extends over a more extended period, dating back to March 2020. During this time, shares of the company have experienced a stellar rally, soaring from ₹591 apiece to the current trading price of ₹3,629, resulting in a remarkable increase of 514%.
Force Motors is the flagship company of the Abhay Firodia group and is known for its expertise in designing, developing, and manufacturing a wide range of automotive components, aggregates, and vehicles. The company's product portfolio includes light commercial vehicles (LCVs), multi-utility vehicles (MUVs), small commercial vehicles (SCVs), sports utility vehicles (SUVs), and agricultural tractors.
Force Motors June Quarter Performance
Financially, for the April-June quarter of FY24, Force Motors reported a consolidated profit after tax of ₹69 crore, showcasing a substantial turnaround from a net loss of ₹17 crore reported in the same period last year. The company's consolidated revenue from operations grew by 53.24% year-on-year to ₹1,488 crore in Q1FY24. Additionally, the company witnessed a significant improvement in its operating profit, reaching ₹177 crore from ₹41 crore in Q1FY23, with the EBITDA margin expanding by 800 basis points year-on-year to 12%.
Ownership data reveals that the promoters own 61.6% of the company's shares at the end of Q1FY24, while foreign portfolio investors and domestic institutional investors hold 4.1% and 1.5%, respectively. Regular shareholders own 32.8%.
In summary, Force Motors' impressive performance in August, coupled with its remarkable profitability turnaround, has ignited investor confidence, leading to 5% surge in its stock price. The company's consistent growth, diverse product range, and improving financials position it as a compelling player in the automotive industry, with shareholders eagerly awaiting insights into its future plans and strategies at the upcoming AGM.
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