TNI || New Delhi || 9th April 2022
In the BSE intraday trade on Wednesday this week, shares of Force Motors soared over 6% to a high of Rs 1247.35 per share, which was also the day’s high.
On the basis of more than doubling overall sales month over month in March 2022, the automaker’s stock soared.
In February 2022, the company recorded total sales of 2690 units, up from 1131 units the previous month.
Similarly, the company saw a 31% increase in overall sales from 2058 units in March 2021 to 2999 units in March 2022. In March 2022, the company sold 2,392 units in the local market and exported 298 units, according to a document.
Force Motors is a leading van manufacturer in India, with names such as Tempo, Minidor, Matador, and Traveller. It generally focuses on commercial trucks and tractors.
On the BSE, the stock closed roughly 1% higher on Wednesday, at Rs. 1182.7 per share.
The stock has risen over 21% on the BSE in the last month, compared to a 13% rise in the S&P BSE Sensex, and has been up over 14% in the last five sessions, compared to a 1% rise in the benchmark index.
According to brokerage reports, with the recent March automotive sales data across sectors and categories, demand for the entire automobile segment is expected to improve.
Improved freight rates and the government’s infrastructure drive are helping to boost CV demand, which is expected to continue to rise due to high economic activity and high-capacity utilisation, according to Motilal Oswal’s analysis.
Strong freight availability, increased road construction activity, and a gradual pick-up in demand helped boost CV volume, according to Nirmal Bang, who expects a continued upsurge in CV capacity in the near term as economic activities pick up and financing problems are ironed out.