Force Motors, the Abhay Firodia group's flagship company, saw its shares hit the 5% upper circuit limit at ₹3,629.85 apiece during early trade deals on Thursday. This impressive gain came as investors responded positively to the company's August sales performance.
The company is a fully vertically integrated automobile company with expertise in the design, development, and manufacture of the full spectrum of automotive components, aggregates, and vehicles.
Its range of products includes light commercial vehicles (LCVs), multi-utility vehicles (MUVs), small commercial vehicles (SCVs), sports utility vehicles (SUVs), and agricultural tractors.
In August, the company sold 2,360 units of SCVs and LCVs, along with 672 units of UVs, SUVs, and tractors, bringing its total sales to 3,032 units. During the same month of last year, the company sold 2,362 units, which is an increase of 28.36% YoY, according to the company's exchange filing.
The company's shares have been on an upward journey since March 2023 and have gained 234% to date. Since March 2020, the 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%.
For the April-June quarter of FY24, the company reported a consolidated profit after tax of ₹69 crore, which displays a solid turnaround from a net loss of ₹17 crore reported in the same period of last year.
The consolidated revenue from operations grew by 53.24% YoY to ₹1,488 crore in Q1FY24. The company witnessed an improvement in its operating profit, reaching ₹177 crore from ₹41 crore in Q1FY23, while the EBITDA margin expanded by 800 basis points YoY to 12%.
Further, the company's EPS (Earnings Per Share) during the quarter improved to ₹52. At the prevailing price, the stock trades at a price-to-earnings multiple of 21.9x, which is much lower compared to the industry P/E of 37.9x.
The promoters own 61.6% of the shares in the company at the end of Q1FY24, while foreign portfolio investors and domestic institutional investors each own 4.1% and 1.5%, respectively. Regular shareholders own 32.8%, Trendlyne data showed.
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