India's Force Motors posts Q1 profit on strong demand

Force Motors

09/08/2023 13:12

BENGALURU, Aug 9 (Reuters) - India's Force Motors  FORC.NS  on Wednesday posted a
first-quarter profit, boosted by a rise in demand.
    The automobile company reported a consolidated net profit of 685.6 million rupees ($8.3 million)
for the quarter ended June 30, compared to a loss of 166.1 million rupees a year ago.
    Revenue rose 53.2% to 14.88 billion rupees.
    For further highlights, click  urn:newsml:reuters.com:*:nFWN39Q1I6
    
    KEY CONTEXT
    Sales of commercial vehicles have increased amid a pick-up in construction projects, as the
Indian government pushed for higher capital expenditure in its last full budget ahead of a
parliamentary election due in 2024.  urn:newsml:reuters.com:*:nL1N34H061
    The company's larger rival Ashok Leyland  ASOK.NS  beat quarterly profit estimates, while Escorts
Kubota  ESCO.NS  reported a near-93% jump in its first-quarter profit.
    
    PEER COMPARISON    
    
                             Valuation       Estimates (next 12    Analysts' sentiment          
                              (next 12            months)                                       
                              months)                                                           
                RIC        PE      EV/EBI  Revenue      Profit     Mean     # of      Stock to  Div
                                   TDA     growth       growth     rating*  analysts  price     yield
                                                                                      target**  (%)
 Force Motors    FORC.NS   NULL    NaN        NULL        NULL     Strong          1    2.05     0.36
 Ltd                                                               Buy                          
 Ashok Leyland   ASOK.NS    20.33   17.55     13.48       52.39    Buy            32    0.93     1.42
 Ltd                                                                                            
 Mahindra and    MAHM.NS    18.72   18.80     14.34       17.32    Buy            35    0.91     1.08
 Mahindra Ltd                                                                                   
 Escorts         ESCO.NS    27.39   20.80     10.50       35.77    Hold            8    1.16     0.27
 Kubota Ltd                                                                                     
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    
APRIL-JUNE STOCK PERFORMANCE OF FORCE MOTORS VS PEERS
    
   
    
-- All data from Refinitiv
-- $1 = 82.8080 rupees

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Force Motors shares vs Peers    https://tmsnrt.rs/3DPcaVR
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Varun H K)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))