Force Motors shares continued their impressive winning streak on Thursday, February 5, surging another 11% to hit a fresh all-time high of ₹22,200 per share. This marked the fourth consecutive day of gains for the auto stock, even as the broader Indian equity market traded with significant cuts. The stock crossed the ₹22,000 mark for the first time, driven by the company's strong December-quarter performance.
Robust Quarterly Performance Drives Rally
The company released its Q3 results on Wednesday, showcasing a remarkable 253% year-on-year jump in consolidated net profit to ₹406 crore. This compares to a net profit of ₹115 crore in the same quarter last year. On a sequential basis, net profit improved by 16%, marking the third straight quarter of growth. This quarter's net profit stands as the second-best in the company's history, only behind the ₹435 crore reported in Q4FY25.
Operational Metrics Show Strong Growth
On the operational front, EBITDA grew 61.2% year-on-year to ₹374 crore in Q3. Margins expanded sharply by 600 basis points to 18%, indicating improved efficiency. Consolidated revenue for the quarter stood at ₹2,129 crore, up 12.7% from ₹1,889 crore in the year-ago period.
However, it is important to note that the profit growth was largely led by a significant rise in other income, which jumped to ₹241 crore in Q3 from just ₹20 crore in the same quarter last year. This component played a crucial role in boosting the bottom line.
Force Motors Enters Elite Club of High-Priced Stocks
According to data from Trendlyne, Force Motors has recently entered the list of the top 10 most-valued stocks on the Indian stock market, surpassing Hitachi Energy India. It is now the third-highest-priced stock in the auto sector, reflecting its elevated market standing.
Sustained Bull Run and Wealth Creation
The shares have maintained a consistent winning streak in recent years, emerging as one of the biggest wealth creators. Although the stock faced prolonged periods of stress, it later demonstrated remarkable resilience, recouping all losses and attracting bullish sentiment at lower levels.
The stock has maintained a one-way run since February 2025, closing nine of the following 11 months in positive territory. This resulted in a bumper rally of 204% during that period.
Long-Term Multibagger Performance
Zooming out to a longer timeframe, the stock has surged nearly 9,760% from its 2013 trading price of ₹225 to the current level of ₹22,200. During this period, it delivered multibagger returns in five out of the last twelve years.
The year 2025 marked the best performance with a rally of 216%, followed by 2015, 2014, and 2023, which saw gains of 188%, 187%, and 161%, respectively.
Factors Behind Sustained Demand
The consistent demand for Force Motors shares on Dalal Street can be attributed to the company's improving performance with each passing quarter. Steady growth in sales has supported higher valuation multiples, making the stock attractive to investors.
The rally has not only boosted the company's market capitalisation but has also multiplied the wealth of retail investors. According to Trendlyne data, retail investors cumulatively owned a 26.1% stake in the company at the end of the December quarter.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
