Shares of small commercial vehicle (CV) and multi-utility vehicle (MUV) maker Force Motors jumped over 15.5 per cent to Rs 19,796 apiece on the NSE in Thursday’s trade, hitting 52-week high of Rs 20,500. The rally came after the company reported a solid 52 per cent on-year rise in net profit to Rs 176 crore for the June quarter (Q1 FY25), powered by strong domestic demand and higher volumes. Here is what’s driving the rally: 

Earnings Review

Revenue from operations rose 22 per cent year-on-year to Rs 2,297 crore, led by strong performance of models like Urbania, Traveller and Trax. The company said domestic sales volumes were up 26 per cent, with over 90 per cent of its sales coming from India. Management credited internal efficiencies and a sharp focus on customer needs for the strong showing.

Zero debt, defence order boost sentiment

Investors cheered the company’s zero-debt balance sheet, highlighting strong financial discipline. The stock also gained from a March 2025 defence vehicle order, further cementing Force’s position in the specialised vehicles segment. Additionally, Force Motors continues to supply engines for BMW and Mercedes-Benz in India.

Stock up 200% YTD, 20x in 5 years

Force Motors shares have rallied 200 per cent so far in 2025 and have risen 20-fold over the past five years. In 2023 and 2024 alone, the stock surged 142 per cent and 94 per cent, respectively. Trading volumes were five times the monthly average, indicating strong investor interest post-results.

Market Outlook

With strong domestic demand, no debt, and diversification into defence and luxury auto manufacturing, analysts believe Force Motors is well-positioned for continued upside — though valuations may start to look stretched after this year’s massive run.