Force Motors extends winning spree

NEW DELHI: Shares of Force Motors closed the day 7.7 per cent higher at Rs 3,041 on Thursday, continuing their winning spree over the past five sessions. The stock has gained over 30 per cent over the past week on expectations of a pickup in discretionary spend in the economy and a revision of circuit limits for the stock.

The stock hit a high of Rs 3,055 on BSE in intraday trade. The scrip has surged as much as 152 per cent year-to-date after the Pune-based automaker revealed plans to triple its revenue to Rs 3,000 crore in three years, driven by its contract manufacturing business for leading automobile companies like Mercedes Benz and BMW.

Force Motors is a net debt-free company, sitting on cash and cash equivalents of around Rs 290 crore (Rs 220 per share) as of March 31, 2015.

Brokerage IndiaNivesh is bullish on the long-term prospect of the company, as it believes the picture will change dramatically for the automaker by FY20, with the company's auto component segment contributing 54 per cent of revenues from 30 per cent at present.