Shares of Force Motors zoomed over 6 per cent to touch the day’s high level of Rs 1247.35 per share on the BSE intraday trade on Wednesday. The stock of the auto company surged on the back of more-than-double total sales during March 2022 on a month-on-month basis.
The company reported total sales of 2690 units in the previous month as compared to 1131 units sold in February 2022. Similarly, the company also registered around a 31 per cent surge in the total sales growth from 2058 units in March 2021.
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The company sold 2,392 units in the domestic market and exported 298 units in March 2022, it said in a filing on Wednesday.
Force Motors is one of India’s largest of makers and is known for brands like Tempo, Matador, Minidor, and Traveler. It mainly deals into commercial vehicles and tractors segment.
The stock on Wednesday closed at nearly 1 per cent higher at Rs 1182.7 per share on the BSE.
The counter in the last one month has gained over 21 per cent on the BSE as compared to around 13 per cent rise in the S&P BSE Sensex, while it has surged over 14 per cent in the last five sessions as against over 1 per cent rise in the benchmark index during the same period.
According to brokerages reports, the demand for the overall automobile segment is seen improving with the recent March auto sales numbers across sectors and categories.
Improved freight rates and the government’s infrastructure push are aiding CV (commercial vehicles) demand and it continues to grow on increasing economic activity and high-capacity utilization, Motilal Oswal said in its report.
In CVs, volume was supported by strong freight availability, increased activity in road construction, and a gradual pick-up in demand, Nirmal Bang said in a report, expecting a further sustained uptick in CV volume in the coming quarters as economic activities gather pace and financing issues / cash-flow constraints are ironed out.