Force Motors shares hit 5% upper circuit on robust Q2 results

Shares of Force Motors witnessed strong investor interest, reaching the 5 percent upper circuit at Rs 4,053 per share on November 10. This surge followed the company’s impressive performance in the July-September quarter (Q2FY24). The S&P BSE Sensex, in contrast, was down 182 points or 0.2 percent, standing at 64,649 levels as of 9:30 am.

With Friday’s rally, the stock has raced over 29 percent in three months as against 1 percent decline in the benchmark Sensex. Earlier, Force Motors shares hit 52-week high of Rs 4,173 per share on October 6, 2023.

Follow live blog for all the market action

The company’s revenue surged 42.5 percent on-year to Rs 1,802 crore in the September-ended quarter, while profit was up nearly five-fold to Rs 94 crore.

The auto major’s earnings before interest, tax, depreciation, and amortisation (Ebitda), too, more-than-doubled to Rs 225 crore in Q2FY24.

As a result, Ebitda margins expanded to 12.4 percent in Q2FY24 as compared to 7.8 percent in the year-ago period.

According to SIAM data, Force Motors market share grew to 4.3 percent in Q2FY24 as compared to 3.3 percent in the year-ago period. It increased its presence across key geographies like Tamil Nadu, Maharashtra, Uttar Pradesh, Rajasthan, West Bengal, and Gujarat.

ALSO READ: Automobile retail sales dip 7.73% in October: FADA

In the September-ended quarter, foreign institutional investors (FIIs) have increased their stake to 4.9 percent from 4.1 percent in the year-ago period.

Institutional investors, too, have upped their stake to 6.5 percent in September 2023 from 5.5 percent in June 2023.

However, mutual funds have trimmed their stake to 0.9 percent in the September-ended quarter from 1.09 percent in the year-ago period.

Currently, the stock of Force Motor is trading at 18 times (x) price-to-earnings (PE) ratio, lower than its sector PE ratio of 33.7x, suggested data.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.