205% return YTD! Force Motors shares surge nearly 20%, top ₹20,000 mark for first time
The rally followed the release of the company's June quarter performance, which was announced post-market hours on Wednesday, with the company beating Street estimates on all fronts.
The company reported a 52% YoY jump in its consolidated profit to ₹ 176 crore in Q1FY26, compared to ₹ 116 crore in the same period of the last fiscal. Although the company's net profit in the preceding March quarter stood at ₹ 435 crore, it was driven by other income, which came in at ₹ 418 crore.
The consolidated revenue from operations during the June quarter rose to ₹ 2,297 crore from ₹ 1,885 crore, marking an improvement of 22%.
At the operating level, EBITDA surged 33.3% YoY to ₹ 332 crore, up from ₹ 249 crore in Q1FY25, with margins expanding to 14.4% from 13.2% last year.
The company is a fully vertically integrated automobile manufacturer, 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.
For the June quarter, the company recorded a healthy increase in vehicle sales (domestic), rising to 2,801 units from 2,465 units in the same period a year ago. These sales comprised small commercial vehicles, light commercial vehicles, and utility vehicles, while it exported 88 units in the same period, which remained flat on a YoY basis. Meanwhile, the company ceased its tractor business a year ago.
Further, Force Motors said its board of directors has approved the appointment of Anshul Saxena as part of the company's senior management personnel. The decision was based on the recommendation of the Nomination & Remuneration Committee.
Saxena has been designated as Vice President – Corporate Strategy, with the appointment effective from today, July 23. In this role, he will be responsible for leading the company's long-term strategic planning and initiatives.
The company's shares have seen an explosive rally so far this year, surging from ₹ 6,538 apiece to the current trading price of ₹ 20,000, a massive gain of 205%. The stock has closed in the green in five of the last seven months (including July), with May marking the highest monthly gain of 42%.
In April 2024, the shares crossed the ₹ 10,000 mark for the first time, and it took just over two years to surpass the next ₹ 10,000 milestone, handsomely rewarding its shareholders. Over the past two years, the stock has jumped 1,800%, and over the last five years, it has rallied nearly 2,000%.
At the end of June quarter, the promoters hold 61.6% of the company's shares, while foreign portfolio investors and domestic institutional investors own 9.8% and 1.7%, respectively. General shareholders account for 26.9%, according to Trendlyne data.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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