Force Motors in fast lane

Force Motors is the top gainer on the BSE since the opening bell today; going up over 10% to an intraday high a Rs.8894.95, it is now trading at Rs.8746.65. Its 52-week high is at Rs.9240.

There is no new development as such in the stock just that it is gaining attention from fund houses and research analysts alike as a portfolio stock.

The stock is being accumulated on the following triggers for the future:

• Company has lined up Rs 2,000 cr investment over next 3-4 years, including Rs. 200-300 cr on electrification. This is a significant commitment and exceeds current net fixed assets of Rs. 1,600 cr (as of 30.9.23.
• Among other things, it will focus on EV development, especially for last-mile connectivity, having lined up launch of the first electric offering of Traveller Electric in Q1FY25E and another (Urbania electric) by FY25-end.
• Company recently showcased vehicles across diverse fuel types such as Traveller Electric, Urbania Diesel and Traveller CNG, to be future-ready, across fuel-types.
• Thus, it remains a future-ready mid-cap OEM in the auto space.

Mr.SP Tulsian has recommended the share as a buy at Rs. 8,867 with target price of Rs. 10,197 over the next 8-10 months, translating into 15% return during this period.