Force Motors faced a significant setback as its share price plummeted by 5% following a decline in its quarterly profit for Q4FY24, marking the first drop in five quarters. The dip in profit, attributed to escalating costs, saw the company’s consolidated net profit for the quarter ending March 31 diminish by 4.3% to ₹140 crore. Despite this, operating revenue surged impressively by over 35% to reach ₹2,011 crore.
Opening at ₹10,100 apiece on the BSE, Force Motors’ share price experienced a notable downturn in Monday’s session. Analysts express cautious optimism, foreseeing a positive trend in the long term but anticipate potential short-term profit booking. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted that the share price exhibited a bearish candlestick pattern on the daily chart, indicating a short-term downturn. However, the overall trend remains positive, with support expected around the ₹9,000 mark in case of further declines.
Force Motors, known for manufacturing engines for prestigious brands like Mercedes and BMW in India, faces the challenge of balancing rising costs against maintaining profitability. While the recent quarterly results may have dampened investor sentiment temporarily, the company’s long-term growth prospects and strategic partnerships with global automotive giants continue to inspire confidence among stakeholders.
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