Rs 20/Share Dividend, Q4 Results Declared: Buy The Auto Stock At 52W-High Level?

With its headquarters in Pune, Force Motors Ltd. is a global Indian manufacturer of automobiles. Small commercial vehicles (SCV), light commercial vehicles (LCV), multi-utility vehicles (MUV), and special vehicles (off-roaders, special vehicles, and military vehicles are included in its purview. The company sells a variety of products to countries in Africa, Latin America, Asia, and the Middle East. On Monday, the company's market value was Rs 12,401.65 Cr. The auto stock reached a new high of Rs 10,272.65 per share during the trading session and closed 0.72% lower at Rs 9515.65 following the company's release of its financial results for the quarter and fiscal year that ended on March 31, 2024.

Force Motors Dividend

The Board of Directors, "Recommended a dividend of Rs.20/- (Rupees Twenty only) (200%) per equity share of Rs. 10/- each, for the Financial Year ended 31st March 2024," said Force Motors in a regulatory filing.

Force Motors Q4 Results

For the fourth quarter that ended on March 31, 2024, automaker Force Motors Ltd. reported a 4.3% year-on-year (YoY) decline in net profit at Rs 140.3 crore. Force Motors reported a net profit of Rs 146.6 crore for the same period in the last fiscal, according to a regulatory filing from the company. Compared to the same period in the previous fiscal year, when it was Rs 1,490.3 crore, the business's revenue from operations climbed by 35% to Rs 2,011.2 crore. In comparison to the same period in the previous fiscal year, when EBITDA was Rs 120.8 crore, it was Rs 278.7 crore in the fourth quarter of the current fiscal. In the reporting quarter, the EBITDA margin was 13.9% as against 8.1% in Q4FY23.

Force Motors Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "FORCEMOT is currently trading at Rs 9680.20, consolidating near its all-time high, indicating strong momentum. This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by robust trading volume. These patterns underscore a strong upward trajectory in the stock. The Relative Strength Index (RSI) stands at 70 and is on an upward trend, signifying a significant surge in buying momentum. Both RSI and Stochastic RSI in the overbought region suggest that positional traders may consider holding their positions, implementing a trailing stop-loss."

"The overall trend for FORCEMOT is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to achieve a target price of Rs 12000 in the near term. It is advisable to consider buying on dips, particularly around Rs 9000, capitalizing on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 8000 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal," the analyst further commented.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.