Force Motors hits 20% upper circuit on healthy Q2FY25 results

So far in 2024, the stock has surged 102 percent

Shares of Force Motors soared 20 percent to hit the upper circuit at Rs 7,654 on October 30 after the company posted strong Q2 FY25 results.

In Q2, the company's consolidated net profit jumped 43 percent YoY to Rs 134 crore, compared to Rs 92.4 crore a year ago. Revenue grew 7.8 percent YoY to Rs 1,941.3 crore, while total income increased 7.6 percent YoY to Rs 1,949.9 crore.

Although sales of the company’s own vehicles declined 19 percent, robust demand for luxury engines provided a significant boost.

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At the operational level, the company's  Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter rose 25 percent to Rs 282 crore, compared to Rs 225 crore in the same quarter a year ago. EBITDA margin expanded year-on-year to 14.5 percent from 12.5 percent last year.

Force Motors, which manufactures engines for BMW and Mercedes-Benz, has established itself as a key player in the luxury automotive space. Founded in 1958, the company specialises in utility and commercial vehicles, including vans, school buses, and ambulances.

Over the years, Force Motors has collaborated with automotive giants like Daimler, Rolls-Royce, Bosch, and MAN, leveraging global expertise to create advanced mobility solutions.

So far in 2024, the stock has surged 102 percent, fueled by the company’s strong growth in engine manufacturing and commercial vehicle segments.

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