FIIs' Favorite: This Small-Cap Passenger Vehicle & Commercial Van Maker's Stock Surges Nearly 6%—Here’s Why

Since December 2023, FIIs have increased their stake in the company from 4.91% to 8.15% as of December 2024, signaling strong institutional interest

The shares of Force Motors Ltd, a passenger vehicle and van manufacturer soared in Wednesday’s trade, reaching an intraday high of Rs 7,535 on the NSE, marking a gain of over 5.32 per cent. This surge follows the company's robust February sales report, which has sparked investor optimism.

According to the latest data, the company reported a significant 46.28 per cent year-on-year (Y-o-Y) increase in total sales—including both domestic and export markets—reaching 3,600 units in February 2025, compared to 2,461 units in February 2024. The domestic segment performed particularly well, with sales of Small Commercial Vehicles (SCVs), Light Commercial Vehicles (LCVs), Utility Vehicles (UVs), and Sports Utility Vehicles (SUVs) rising by an impressive 48.81 per cent Y-o-Y to 3,521 units, up from 2,366 units.

However, the export segment showed a slight decline, with sales dropping 16.84 per cent to 79 units in February 2025 from 95 units a year earlier. The company also highlighted that its LCV sales for February 2025 included 1,033 vehicles delivered as part of an order from the Uttar Pradesh government for 2,429 vehicles.

This positive momentum follows strong January sales, where total SCV, LCV, UV, and SUV sales reached 3,597 units, reflecting a 20.34 per cent Y-o-Y growth from 2,989 units in January 2024. The domestic market continued its upward trajectory with a 39.27 per cent increase to 3,493 units, up from 2,508 units a year ago. However, exports for the month saw a sharp decline of 78.37 per cent, dropping to 104 units from 481 units in January 2024.

Adding to its strategic shifts, the company discontinued its tractor business effective March 31, 2024, aiming to focus on its core commercial vehicle and utility segment.

The stock has caught the attention of Foreign Institutional Investors (FIIs), who have been steadily increasing their stake. Since December 2023, FIIs have raised their holding in the company from 4.91 per cent to 8.15 per cent in December 2024, indicating strong institutional confidence in the company’s growth potential.

The company, established in 1958 and formerly known as Bajaj Tempo, is the flagship entity of the Abhay Firodia Group. It is a key player in manufacturing fully integrated small and light commercial vehicles, multi-utility vehicles, and previously agricultural tractors. The company serves markets across the Middle East, Asia, Latin America, and Africa.

So far in 2025, the stock has delivered nearly 12 per cent returns on a year-to-date basis. It currently holds a market capitalization exceeding Rs 9,738 crore. The stock’s 52-week high stands at Rs 10,272.65 per share, while its 52-week low is Rs 5,815 per share.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.