Shares of Force Motors surged over 10 percent to Rs 7,057 on February 5 following the release of its January sales data, signaling a strong performance in the commercial and utility vehicle segments.
Despite this rally, the stock has declined over 8 percent in the past three months, underperforming the Nifty 50’s 1 percent drop. Earlier, the stock had touched a 52-week high of Rs 10,272 on April 29, 2024.
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In January, domestic sales of small commercial vehicles (SCVs), light commercial vehicles (LCVs), utility vehicles (UVs), and sports utility vehicles (SUVs) grew 39.27 percent year-on-year to 3,493 units, up from 2,508 units a year ago. Overall sales, including exports, rose 20.3 percent to 3,597 units.
However, the company’s exports slumped 78.37 percent to 104 units, down from 481 units a year prior. Additionally, Force Motors officially exited the tractor business as of March 31, 2024.
Adding to the momentum, the company secured a major order for 2,429 BS-VI diesel ambulances from Uttar Pradesh’s Medical Health and Family Welfare Department. The order, set for execution between December 2024 and March 2025, reinforces Force Motors’ foothold in the specialized vehicle market, though the company did not disclose its value.
On the institutional front, foreign institutional investors (FIIs) increased their stake to 8.1 percent in the December quarter, up from 7.8 percent previously, while mutual funds slightly trimmed their holdings from 0.47 percent to 0.39 percent.
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