Shares of Force Motors Ltd Hit a 52-Week High with Heavy Volume; Here’s Why!

Force Motors Ltd saw its share price surge by 10 per cent during Thursday’s trading session, reaching a price of Rs 22,171.25 per share being 52-week high price, fuelled by an exceptional Q3FY26 financial performance. The company reported a massive 252 per cent year-on-year increase in consolidated net profit, totalling Rs 406.15 crore, supported by a 13 per cent rise in operational revenue to Rs 2,128.56 crore. While organic growth remained strong, profitability was further boosted by a significant one-time exceptional gain of Rs 211 crore. This quarterly success mirrors a broader nine-month trend, where net profits rose by 155 per cent to Rs 933.21 crore, reflecting the company's sustained momentum and rewarding long-term investors with multibagger returns of over 1,360 per cent over the last three years.

Operational data for January 2026 indicates steady demand, with total sales volume rising 4.64 per cent to 3,764 units. This growth was primarily anchored by the domestic market, covering segments from small commercial vehicles to SUVs, which saw a nearly 5% uptick. Although export figures experienced a minor dip of 4.81%, the impact was largely mitigated by robust internal demand and improved realisations across the Service portfolio. The sales trajectory suggests a stable market position as the company continues to optimise its performance across both passenger and commercial vehicle categories.

Beyond its financial results, Force Motors announced a strategic move to acquire 100 per cent of Veera Tanneries Private Limited (VTPL) to facilitate future business expansion. While VTPL operates in the chrome-free organic leather sector, the primary objective of the cash-based acquisition is to secure the company’s land bank for industrial use. The deal, which is expected to be finalised by March 31, 2026, marks a clear effort by the Board to bolster infrastructure as the company scales. Despite VTPL’s modest recent turnover, the acquisition provides Force Motors with the physical assets necessary to support its long-term growth strategy and manufacturing capacity.

About the Company

Force Motors Limited, established in 1958, has evolved into a prominent Indian automobile manufacturer, notably recognised as a leading van maker, offering a diverse Service portfolio spanning light commercial vehicles, multi-utility vehicles and specialised engines. With five manufacturing units across India and a strong R&D centre in Pune, the company has forged strategic partnerships with global giants like Mercedes-Benz and BMW, supplying engines for their Indian-made vehicles. Force Motors also caters to both passenger and goods transport with its Traveller and Trax ranges and has recently introduced the Urbania, a premium modular monocoque passenger van, expanding its footprint into international markets, alongside its rugged off-road capable Gurkha series.

The company has a market cap of over Rs 27,000 crore with a PE of 30x, an ROE of 21 per cent and an ROCE of 30 per cent. The stock has given multibagger returns of 257 per cent from its 52-week low of Rs 6,210.55 per share and a whopping 1,360 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.