Latest news with #ForceMotors'
Time of India
3 days ago
- Automotive
- Time of India
Rs 1 lakh to Rs 20 lakh in 5 years! Force Motors shares deliver jackpot returns with zero analyst coverage
Live Events 3 Pillars of Force Motors' Success Premium OEM Partnerships Future Growth Drivers Is Force Motors Stock Too Expensive? Key Risks to Monitor Long-Term Structural Story (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel A little-known smallcap stock with no analyst coverage, barely 1% mutual fund holding, and next to no investor outreach has silently turned into a 20-bagger. Shares of Pune-based Force Motors , best known for its sturdy Travellers , rugged Gurkhas, and engine assembly lines for BMW and Mercedes-Benz , have surged a mind-bending 1,868% over five years, transforming a ₹1 lakh investment into a near-₹20 lakh company's exit from low-margin tractors and strategic thrust on original equipment manufacturing ( OEM ) for luxury marques like BMW and Mercedes-Benz mark a decisive pivot toward higher-quality earnings. In just the past year, the stock is up 117%, fueled by rising demand in shared mobility and last-mile delivery Global's Aakanksha Chopra points out that the stock's re-rating has been backed by a sharp operational turnaround, strategic realignment of its business model, and disciplined capital transformation is evident in the numbers. From FY22 to FY25, revenue surged from ₹3,240 crore to ₹8,072 crore, representing nearly 2.5x growth. "Net profit swung from losses to over ₹800 crore, driven by operating leverage, a premium product mix, and strong execution," Chopra noted. "EBITDA margins expanded to 14%, and ROCE improved to approximately 25%, highlighting a high-quality earnings profile."The momentum shows no signs of abating. In Q1 FY26 alone, Force Motors reported a 22% year-on-year rise in consolidated revenue to ₹2,297 crore, according to Kalp Jain, Research Analyst at INVasset PMS. "Operating performance was even stronger — EBITDA jumped 33% to ₹332 crore, pushing margins to 14.4%. Net profit surged 52% YoY to ₹176 crore."Sunny Agrawal, Head - Fundamental Research at SBI Securities , highlights the operational drivers: "26% volume growth in the UV segment in 1QFY26 for Force Motors. Sales/EBITDA/PAT up by 22%/32%/52% YoY to Rs 2297/323/176 cr."The strong performance stems from "strong response to the Urbania utility vehicle which has emerged as a leading choice for employee transportation and short haul tourist travel along with the Traveller," Agrawal Jonagadla, smallcase Manager and Founder of Quantace Research, identifies three key drivers behind Force Motors' 20-bagger run: "A structural step-up in profitability — Q1 FY26 net profit leapt 52% YoY to ₹176 cr on a 14.4% EBITDA margin, the fourth straight quarter above 14%."The second pillar is order visibility. "A 2,978-unit Gurkha contract for the Indian defence forces secures c. ₹1,000 cr revenue over FY26-27," Jonagadla noted. Agrawal confirms: "Company won an order from Defence Ministry for supplying 2,978 Gurkha vehicles in Mar'25."The third pillar involves "sticky, high-margin engine outsourcing for Mercedes-Benz and BMW, underscored by the 100,000-th BMW powertrain rolled out in June 2025," according to company's transformation from a traditional commercial vehicle player to a sophisticated OEM partner has been remarkable. "The company's premium engine assembly partnership with BMW and Mercedes-Benz has scaled meaningfully and now contributes a significant share of revenue with higher realizations," Chopra elaborates on this strategic shift: "Once seen as a modest player in the light commercial vehicle segment, Force Motors has reinvented itself. It now operates across multi-utility vans, niche off-roaders like the Gurkha, and most critically, supplies engines and axles to marquee global OEMs such as Mercedes-Benz and BMW through dedicated manufacturing facilities."In FY25, Force Motors clocked ₹8,128 crore in revenue and ₹800 crore in net profit, doubling its bottom line from the previous year. Its return on equity (RoE) stood at 25.6%, while return on capital employed (RoCE) hovered around 25%, both signaling a capital-efficient business built for longevity, analysts balance sheet strength is equally impressive. "A leaner balance sheet with a debt-to-equity ratio under 0.3x now provides ample headroom for growth investments," Chopra noted. Jain adds: "The company is net debt-free, with a strong liquidity position and prudent working capital management."Looking ahead, the company is positioning itself for emerging opportunities. "Force Motors has begun investing in next-generation EV platforms in the LCV segment, offering strategic optionality in a decarbonizing auto landscape," Chopra sees additional upside potential: "Upside may come from scaling Urbania exports, electrified last-mile vans and the Rolls-Royce JV genset opportunity—segments where consensus models still embed conservative volumes."However, the spectacular run has pushed valuations to demanding levels. "The stock trades at 31.0x FY26E P/E, which appears to be fair valued and one round rerating is completed," cautioned Agrawal from SBI echoes the valuation concern: "At ~29 × trailing earnings, the market is pricing uninterrupted double-digit margins and 25%+ ROCE continuity."Jain takes a measured view: "The company currently trades at a P/E of ~26x trailing earnings — a valuation that assumes continued momentum. Sustaining margins amid rising input costs, managing export volatility, and ensuring consistent order flow from OEMs will be critical in validating this premium."Despite the impressive trajectory, analysts identify several risks. Jonagadla warns of "lumpy defence delivery and cost overruns; OEM partners potentially in-housing engines as they electrify; fragile exports—shipments fell 78% YoY in March–April 2025 even as domestic CV sales rose; and cash-flow drag from the ambitious EV capex."Agrawal points to information constraints: "As much information is not available (due to lack of any investor deck, mgmt interaction, concall etc), going forward, the street will keenly track monthly sales volume to understand the growth trajectory of the company."Despite near-term risks, analysts remain constructive on the long-term outlook. "While the stock's sharp re-rating now embeds elevated expectations, long-term earnings visibility remains intact," Chopra said. "Consensus estimates indicate an EPS CAGR of 25 to 30 percent over FY24 to FY27."Jain concludes: "Force Motors exemplifies what a silent compounder looks like before it captures the limelight. The company has quietly stitched together a compelling narrative — one of operational transformation, financial discipline, and market trust. For long-term investors, this is no longer a forgotten name from the commercial vehicle sector — it's a blueprint for India's next-generation manufacturing success."As Force Motors continues its remarkable journey from an overlooked smallcap to a multi-bagger phenomenon, the key question remains whether the company can sustain its operational excellence while justifying the premium valuations that its success story has commanded.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Business Standard
7 days ago
- Automotive
- Business Standard
Smallcap auto stock soars 20%; zooms 216% thus far in CY25. Do you own?
Force Motors share price today Shares of Force Motors hit a new high of ₹20,563, soaring 20 per cent on the BSE in Thursday's intra-day trade in an otherwise subdued market after the company reported healthy June quarter earnings (Q1FY26). In comparison, the BSE Sensex was down 0.28 per cent at 82,492 at 10:02 AM. In the past one month, the stock price of Force Motors has rallied 50 per cent, as compared to 0.54 per cent rise in the BSE Sensex. Thus far in the calendar year 2025 (CY25), the stock price of the smallcap automobile company has zoomed 216 per cent, as against 5 per cent gain in the benchmark index. Force Motors Q1 results For Q1FY26, Force Motors reported 54 per cent year-on-year (YoY) jump in standalone profit before tax (PBT) at ₹286.54 crore. The company had posted PBT of ₹185.66 crore in the same quarter last fiscal. Revenue from operations grew 21.9 per cent YoY at ₹2,297 crore. Profit after tax increased 55 per cent to ₹185.22 crore from ₹119.59 crore. In Q1FY26, the company's domestic sales jumped 26.14 per cent to 9,013 units, as against 7,145 units sold in Q1FY25. What's driving the stock price of Force Motors? Since March 27, the stock price Force Motors has appreciated by 135 per cent after the company in an exchange filing said it has to deliver 2,978 Force Gurkha light vehicles (GS 4X4 800 kg Soft Top) to the Indian Defence Forces. These vehicles are tailored to meet the diverse operational requirements of both the Indian Army and the Indian Air Force, showcasing Force Motors' capability to deliver mission-ready vehicles designed to perform in demanding defence environments, Force Motors said. Force Motors has been catering to the defence sector for many years through its Gurkha LSV (Light Strike Vehicle), a vehicle renowned for its durability, off-road prowess, and adaptability. Force Motors - Outlook Force Motors' leading position in the domestic light commercial vehicle (LCV) passenger segment, presence across multi-utility vehicles (MUVs) and sports utility vehicle (SUVs) segments, and well-established position in the automotive component business with long standing relationships with reputed original equipment manufacturers (OEMs) resulting in a diversified revenue stream. The company focuses on the niche passenger segment of LCV. In the LCV school bus and ambulance segment, the company has a market share of 70-75 per cent. Force Motors will continue to benefit from its niche positioning in the automotive OEM market, supported by the steady launch of new products and variants and rise in demand in the LCV segment, according to Crisil Ratings. The company's brands include 'Urbania' in the LCV segment, 'Traveller' in the PV, school bus, ambulance and delivery van segments; 'Trax' in the UV, ambulance and delivery van segments; and 'Gurkha' and 'Citiline' in the UV segment. Healthy cash generation and prudent funding of capex will ensure the debt protection metrics remain at healthy levels. About Force Motors Force Motors is a fully integrated automobile company, specialising in the engineering, development, and manufacture of vehicles, aggregates, and components. Force Motors' formidable product range spans light commercial vehicles and multi-utility vehicles, and its export presence extends to the Middle East and Gulf region, Asia, Latin America, and Africa. Mercedes-Benz and BMW assigned Force Motors the responsibility of producing and testing engines for all cars and SUVs manufactured in India. Every Mercedes-Benz vehicle made in India is powered by an engine produced at Force Motors in Chakan Pune.
Economic Times
7 days ago
- Automotive
- Economic Times
Force Motors shares rally 20% to hit record high after robust Q1 earnings
Shares of Force Motors surged as much as 20% on Thursday to a 52-week high of Rs 20,563 on the BSE after the auto major posted a 52% rise in its net profit for the quarter ended June 2025, reporting a profit of Rs 176.33 crore. ADVERTISEMENT The company's first-quarter results were announced post-market hours on Wednesday. Force Motors reported a 52.3% year-on-year jump in net profit for the June quarter, up from Rs 115.7 crore a year earlier. Revenue from operations grew 21.9% to Rs 2,297 crore, compared to Rs 1,885 crore in the same quarter last year. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33.3% year-on-year to Rs 332 crore, with margins expanding to 14.4% from 13.2% in the prior-year period, reflecting operational efficiency gains amid firm demand. Force Motors' upbeat results come at a time when several auto sector peers are battling input cost pressures and uneven recovery in rural demand. The strong growth in profitability and margins appears to have bolstered investor sentiment, sending the stock to a new record a separate announcement, Force Motors also said its board had approved the appointment of Anshul Saxena as vice president – corporate strategy, effective July 23. The move, based on a recommendation by the company's Nomination & Remuneration Committee, is seen as part of the automaker's broader push to sharpen its long-term strategic focus. ADVERTISEMENT Saxena, who brings more than 19 years of experience, is known for his cross-functional leadership and has held advisory and board roles across several manufacturing firms. ADVERTISEMENT Shares of Force Motors had declined 1.38% on Wednesday, closing at Rs 17,260. The stock is up a modest 5% year-to-date, with gains of 8.3% over the past six months and 3.4% in the last three months. Also read | Aditya Birla Real Estate shares down 32% from peak. Can the stock reclaim Rs 2,400 post Q1 results? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Business Upturn
7 days ago
- Automotive
- Business Upturn
Force Motors shares surge 13% as Q1 net profit jumps 52% YoY; Anshul Saxena appointed VP of strategy
By Aditya Bhagchandani Published on July 24, 2025, 09:39 IST Shares of Force Motors surged over 13% to Rs 19,371 on Wednesday after the company reported a 52.3% year-on-year rise in consolidated net profit at Rs 176.3 crore for Q1FY26, up from Rs 115.7 crore in the year-ago period. The strong earnings were driven by double-digit growth in both revenue and operating margins. Force Motors' revenue from operations grew 21.9% YoY to Rs 2,297 crore, compared to Rs 1,885 crore in Q1FY25. On the operating front, EBITDA stood at Rs 332 crore, rising 33.3% from Rs 249 crore a year earlier. The EBITDA margin expanded to 14.4%, up from 13.2%, reflecting improved operating efficiency and stronger volumes. The stock touched a high of Rs 19,198 during the session, marking a fresh 52-week high. As of the latest update, the company's market capitalization stood at Rs 25,003 crore. The day's trading range was between Rs 17,225 and Rs 19,198. Additionally, the company announced a key leadership appointment. Anshul Saxena has joined Force Motors as Vice President – Corporate Strategy, effective July 23. Backed by over 19 years of cross-functional leadership experience, Saxena is expected to spearhead the company's long-term growth roadmap and strategic partnerships. His appointment was approved by the board based on recommendations from the Nomination & Remuneration Committee. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
25-06-2025
- Automotive
- Time of India
Force Motors partners with Zoho to implement digital CRM-DMS platform across dealer network
Force Motors has announced a strategic partnership with Zoho Corporation to support the digital transformation of its nationwide and global dealer network. The initiative is part of Force Motors' ongoing digital programme, Project DigiForce , and is aimed at improving dealer operations and customer engagement through the adoption of advanced technologies. As part of the agreement, Zoho 's integrated cloud-based Customer Relationship Management (CRM) and Dealer Management System (DMS) platforms, along with 12 AI-powered front-office applications, will be implemented across Force Motors' dealership and service operations. This system will replace existing legacy tools and centralise functions such as sales, service, marketing, and customer support. Deployment across national and international network Force Motors operates over 200 dealerships, 70 authorised service centres, and 30 parts centres in India, in addition to a presence in over 40 international markets. The new CRM-DMS system will offer a unified platform to these stakeholders, aiming to streamline workflows, support data-driven decision-making, and improve service delivery across every stage of customer interaction. Prasan Firodia, MDirector, Force Motors, said, 'Through Project DigiForce and our partnership with Zoho, we are aiming for a significant transformation in the way we deliver customer experience. The technology solutions from Zoho will also enhance the capabilities of our dealers and distribution partners in India as well as in our global markets. Our collaboration with Zoho, a global technology leader rooted in India, aligns perfectly with Force Motors' commitment to advocate innovation and technology development in India.' Mani Vembu, CEO of Zoho, added, 'Force Motors has long been a symbol of indigenous engineering excellence, backed by a strong nationwide dealer network and a growing global footprint. With Project DigiForce, they are complementing that legacy with a forward-looking digital vision to transform customer engagement across the entire lifecycle—from discovery and purchase to service, support, and ownership." "This partnership reflects a shared commitment to reimagining customer experience as a strategic driver of growth. Together, we are building a connected ecosystem where technology simplifies operations, strengthens collaboration, and delivers contextual, intelligent engagement at every touchpoint,' added Vembu.
