Turnaround story: This small-cap automobile company reports a 500 per cent jump in operating profit; declares stellar dividend!
Shares of the company grew by more than 30 per cent in the last one month.
Force Motors Limited experienced a remarkable turnaround in its financial performance, specifically PAT and PBT. In FY23, the company reported a profit of Rs 133.74 crore. This marked a significant improvement compared to FY22 and FY21, where the company incurred losses of Rs 90.99 crore and 123.54 crore respectively. In FY23, the revenue of the company reached at Rs 5,028.98 crore which grew by 55.20 per cent YoY. The company’s operating profit surged by 517 per cent staying at Rs 311.21 crore. The EBITDA of the company stood at Rs 581.56 crore growing by 468.26 per cent YoY, while the PAT of the company stood at Rs 133.74 crore.
The board of the company also recommended a dividend of Rs 10.00 per equity (100 per cent) share with a face value of Rs 10. The market reacted to the news positively and shares of Force Motors Limited made a fresh 52-week high at Rs 1,862.80 on Wednesday.
Force Motors Limited is in the business of manufacturing fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors, which it supplies to various countries in the Middle East, Asia, Latin America, and Africa.
Overall, the financial performance of the company showed excellent growth and demonstrated improvement in profit margins, indicating better operational efficiency, and investors should keep a close eye on this stock.
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