Force Motors Share Price Drop 5% Amid Q4 Net Profit Decline

Tanushree Jaiswal 29th April 2024 - 01:46 pm

Force Motors share price traded more than 5% lower in the morning trade on April 29 after the company's fourth quarter net profit slipped over 4%. The automobile major's net profit dipped 4.3% year-on-year (YoY) to ₹140.3 crore but revenue climbed 35% to ₹2,011.2 crore.

Analysts, however, foresee a positive trend with a potential for short-term profit booking.

In the fourth quarter, the operating level EBITDA surged to ₹278.7 crore from ₹120.8 crore in the corresponding period of the previous fiscal. The EBITDA margin came in at 14%, up 600 basis points on-year.

The board of directors has also proposed a dividend of ₹20 per equity share of ₹10 each for the financial year ended March 31, 2024.

Force Motors is a fully vertically integrated automobile company with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles. Its range of products includes Light Commercial Vehicles (LCV), Multi-Utility Vehicles (MUV), Small Commercial Vehicles (SCV), Sports Utility Vehicles (SUV) and Agricultural Tractors.

At 9.20 am, the stock was trading at ₹9,200, down 4.3% from the previous close on the NSE. The stock has surged a massive 636% in the past year.

Compared to the previous quarter, the revenue grew by 18.89% and the profit increased by 64.24%. The Selling, general & administrative expenses rose by 23.9% q-o-q & increased by 20.33% Y-o-Y. The operating income was up by 34.81% q-o-q & decreased by 20.93% Y-o-Y. The EPS is ₹106.45 for Q4 which increased by 260.33% Y-o-Y.

Force Motors has delivered 22.36% return in the last 1 week, 194.42% return in the last 6 months and 194.42% YTD return.

Currently, Force Motors has a market cap of ₹13004.77 crores and 52wk high/low of ₹10242.75 & ₹1290 respectively.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Force Motors’ share price has slipped in the morning session and is forming a bearish candlestick pattern on the daily chart. Overall, the trend is positive, but in the near term, we may see some profit booking. Any such dip in the near term is supported by 9,000.

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Tanushree Jaiswal

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