Shares of Force Motors were locked in 20% upper circuit limit on Tuesday as investors cheered its March quarter results and dividend declaration of ₹1 per equity share of ₹10 each for financial year 2023. The smallcap auto stock has been rising for the last seven sessions and gained 26% during the same period.

Continuing its gaining streak, Force Motors shares opened higher at ₹1,555.05, up 8.6% against the previous closing price of ₹1,431.75 on the BSE. During the session, the counter surged 20% to hit a fresh 52-week high of ₹1,718.10, while the market capitalisation rose to ₹2,239 crore. On the volume front, 24,000 shares changed hands over the counter as compared to two-week average volume of 2,779 shares. The stock breached its previous high of ₹1,622.95, touched on November 29, 2022.

The share price of Force Motors traded 87% higher than its 52-week low of ₹918.85 touched on June 20, 2022. The counter has risen 67% in a year; 10% in six-month; and over 27% in a month.

For Q4FY23, Force Motors posted consolidated net profit at ₹146.62 crore as against a net loss of ₹42.77 crore in the year-ago quarter (Q4FY22), and loss of ₹15.57 crore in the previous quarter (Q3FY23).

The revenue from operations of the flagship company of the Abhay Firodia group rose 69% to ₹1,490 crore compared with ₹881 crore in the same period last year. The operating margins stood at 10.65% as compared to 0.86% in the March 2022 quarter, aided by price hike and ease in prices of key raw material such as steel.

The board of Force Motors also recommended a dividend of ₹1 (100%) per equity share of ₹10 each, for the financial year ended March 31, 2023. In the last 12 months, the company has declared an equity dividend amounting to ₹10 per share, while it paid 15 dividends since 2003. At the current share price, the dividend yield stood at 0.58%.

Established in 1958, Force Motors is a fully vertically integrated manufacturer of small and light commercial vehicles, multiutility vehicles, and agricultural tractors. Under the auto components division, engines are assembled for Mercedes-Benz India and BMW India. The primary brands in light commercial vehicles (LCVs) and multiutility vehicles include Traveller, Trax, Gurkha and Shaktiman, while the brands in tractors are Balwan, Orchard, Abhiman and Sanman. 

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