1 week Ago
Stock Market Today: Force Motors , the flagship company of the Abhay Firodia Group, saw its shares surge 9.46% in intraday trade on January 02 to an 8-week high of ₹ 7,256 apiece after securing a significant order for diesel ambulance vehicles. In a regulatory filing today, the company informed investors that it has received an order to supply 2,429 units of BSVI Diesel Ambulances to the Medical Health and Family Welfare Department, Uttar Pradesh.
However, the company did not disclose the order value. Force Motors is a fully vertically integrated automobile company with expertise in the design, development, and manufacture of a full spectrum of automotive components, aggregates, and vehicles. Its product range includes light commercial vehicles (LCVs), multi-utility vehicles (MUVs), small commercial vehicles (SCVs), sports utility vehicles (SUVs), and agricultural tractors.
In November, the company recorded a marginal increase in vehicle sales, rising to 1,885 units from 1,884 units in the same period a year ago. These sales comprised small commercial vehicles, light commercial vehicles, and utility vehicles. The company did not report any sales from its tractor business, which ceased operations on March 31.
A year earlier, it had sold 187 tractors. Domestic sales in November rose 12% year-on-year to 1,736 units, while exports declined 56% to 149 units, the filing stated. For the quarter ending September, the company reported a nearly 44% increase in profit, driven by higher engine sales to BMW and Mercedes, which offset a slump in sales of its multi-seater vans.
While sales of Force Motors' own vehicles fell 19% during the quarter, the company benefited from the surging demand for luxury vehicles in the world's third-largest car market. Its consolidated net profit rose to ₹ 135 crore in the July-September quarter, compared to ₹ 94 crore in the same period a year earlier. Stock up nearly 500% in the last 3 years The company's shares have maintained a strong upward trend over the last three years, consistently breaking new records and setting new milestones, rewarding shareholders handsomely.
Over this period, the shares have delivered a return of 480%. During this time, the shares rallied from ₹ 1,250 apiece to the current trading level of ₹ 7,256 apiece. In April last year, the shares crossed the ₹ 10,000 mark for the first time, touching an all-time high of ₹ 10,277, before witnessing some profit booking.
The promoters own 61.6% of the company's shares as of Q2FY25, while foreign portfolio investors and domestic institutional investors hold 7.9% and 0.
9%, respectively. Regular shareholders own 29.6%, according to Trendlyne data.
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