Force Motors stock shoots up more than 400% in 12 months

The stock of Force Motors Ltd. has risen dramatically over the past year. It has gone from Rs. 569.70 on August 4, 2014 to Rs. 2,856.25 on August 3, 2015 - a rise of over 400% over the last 1 year. On Tuesday it touched a record high of Rs. 3,141.85.

This surge is likely to be because of the optimism over earnings due to the inauguration of the company's new plant near Chennai where it will build engines and transmissions for BMW. The past performance of Force Motors is nothing to write home about.

Unaudited results of the company for the quarter ended June 30, showed a revenue of Rs. 640.00 crore - 17.43% higher that the Rs. 545.01 crore that was recoded a year ago.

Force Motors is now planning to increase the yearly production capacity of the Chennai plant from 20,000 units to 50,000. The company also assembles engines for Mercedes-Benz at its Pune facility.

Source: Economic Times