Shares of Force Motors, the flagship company of the Abhay Firodia group, continued their upward trajectory, gaining for the fifth consecutive day and reaching a new all-time high of ₹1,825 during Wednesday's intraday trade, reflecting a 6.20% increase.
In the previous trading session, the stock had locked in the upper circuit limit of 20% at ₹1718 as investors reacted positively to the company's Q4 performance.
The company achieved a significant turnaround in the March-ending quarter, with a net profit of ₹147 crore as compared to a net loss of ₹43 crore in the same quarter of the previous fiscal year.
After incurring losses in FY21 and FY22 amounting to ₹124 crore and ₹91 crore, respectively, the company achieved a consolidated net profit of ₹134 crore for the financial year ending March 31, 2023.
In Q4, the revenue from operations witnessed an impressive YoY growth of 69% and a QoQ growth of 14.3%, reaching ₹1,490 crore. Overall, the company achieved a total revenue of ₹5,029 crore for FY23, reflecting a substantial 55% increase compared to the previous fiscal year.
The company witnessed improvement in its operating performance during Q4, with EBITDA reaching 118 crore and the EBITDA margin expanding by 400 basis points to 8%.
Further, the EPS (Earnings Per Share) improved to 111.25 in Q4. At the prevailing price, the stock trades at a price-to-earnings multiple of 17.6x, which is much lower compared to the industry P/E of 40.1x.
The stock has been consistently rising since late March, with a notable gain of 15.24% in April, followed by a further rally of 34.25% in the current month so far. This impressive upward trend has resulted in a fabulous overall increase of 65% in just two months.
Over the past three years, the shares of the company have experienced a stellar rally, soaring from ₹840 apiece to the current trading price of ₹1,798, resulting in a remarkable increase of 114%.
Force Motors Ltd. was incorporated in 1958. 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 (LCV), Multi-Utility vehicles (MUV), small commercial vehicles (SCV), sports utility vehicles (SUV), and agricultural tractors.
The promoters own 61.6% of the shares in the company, while foreign portfolio investors and domestic institutional investors each own 2.7% and 2.3%, respectively. Regular shareholders own 33.3%, Trendlyne data showed.
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