Force Motors shares hit 5% upper circuit limit as net profit grows 395% in Q2
Force Motors, the Abhay Firodia group's flagship company, saw its shares hit the 5% upper circuit limit of ₹4,053.25 apiece during early trade deals on Friday. This impressive gain came after the investors responded positively to the company's Q2FY24 performance, which was released post-market hours on Thursday.
For the July-September quarter of FY24, the company reported a net profit of ₹94 crore, which displays a strong improvement from a net profit of ₹19 crore reported in the same period of last year, which is an increase of 395% YoY. Also Read: Diwali 2023 Stock Picks: TCS, Axis Bank among top 5 buys from Religare Broking The consolidated revenue from operations grew by 42.40% YoY to ₹1,800 crore in Q2 FY24.
The company witnessed an improvement in its operating profit, reaching ₹221 crore in Q2 from ₹98 crore in Q2 FY23, while the EBITDA margin expanded by 400 basis points YoY to 12%. Further, the company's EPS (earnings per share) during the quarter improved to ₹71.24 from ₹14.61 in Q2 FY23.
At the prevailing price, the stock trades at a price-to-earnings multiple of 17.33x, which is much lower compared to the industry P/E of 33.78x. Also Read: Diwali 2023: These 6 companies listed in Samvat 2079 gave multibagger returns; check full list Force Motors 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. Also Read: Stock Markets and Diwali 2023: What could be the top challenges before Nifty 50 in Samvat
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