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This stock rose 18% today; here's why

This stock rose 18% today; here's why

The company is engaged in the manufacturing of Light Commercial Vehicles, Small Commercial Vehicles, Utility Vehicles, Agricultural Tractors, and High Technology Automotive Aggregates.

This stock rose 18% today; here's why This stock rose 18% today; here's why

Share of Force Motors Limited rose 18 per cent to hit an intraday high of Rs 1,433.00 on BSE today after the company reported its production and sales data for June 2021.

The company sold a total of 1,757 units in June 2021, comprising 1059 units of small commercial vehicles (SCV) & light commercial vehicles (LCV) and 698 units of utility vehicles (UV), sports utility vehicles (SUV) & tractors. On a month-on-month (MoM) basis, the total sales grew 34.5 per cent from 1,306 units sold in May 2021.

The stock opened 1.76 per cent higher at Rs 1,235.05 against the previous close of Rs 1,213.65. However, the stock continued its strong upside momentum and the market cap of the firm rose to Rs 1,835.03 crore on BSE.

It has gained 46.5 per cent in the last one year and risen 3.75 per cent since the beginning of this year. The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.

The company's domestic sales increased 15 per cent to 1,501 units, exports sales jumped by 175 per cent to 424 units in June 2021 on a month-on-month (MoM) basis.

For FY21, the company reported a net loss of Rs 123.63 crore as against a net profit of Rs 50.17 crore during the previous year ended March 2020. Sales declined 35.46% to Rs 1988.19 crore in the year ended March 2021 as against Rs 3080.52 crore during the previous year ended March 2020.

"The last quarter of FY21 was also impacted severely due to the COVID-19 pandemic. Both revenue and profitability for the year were severely impacted, resulting in a loss in FY21," the company said.

"Also, with the onset of the second wave of COVID-19, the impact will continue to affect the business of the company in the coming quarter," it added.

The company is engaged in the manufacturing of Light Commercial Vehicles, Small Commercial Vehicles, Utility Vehicles, Agricultural Tractors, and High Technology Automotive Aggregates.

 

Published on: Jul 06, 2021, 12:09 PM IST
Posted by: Tanya Aneja, Jul 06, 2021, 12:05 PM IST