Force Motors Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 18
- 2 min read
by KarNivesh | 18 September, 2025
Force Motors Limited has truly become one of India’s most inspiring success stories in the automobile sector. From its early struggles to becoming a strong leader in commercial vehicles, the company’s journey shows how strategic planning, innovation, and resilience can completely transform a business.
From Tempo to Transformation
Founded in 1958 as Bajaj Tempo, the company rebranded as Force Motors in 2005. Over the years, it shifted focus from low-margin tractors to high-value original equipment manufacturing (OEM) for global luxury brands like Mercedes-Benz, BMW, and even a joint venture with Rolls-Royce. This smart pivot helped the company gain credibility and create long-term business stability.
Force Motors is now India’s largest van manufacturer with popular products like the Traveller, Trax, Gurkha, and Urbania. It has also become a trusted partner for international automakers by supplying engines and components that meet global quality standards.
Strong Financial Turnaround
The numbers tell the story of Force Motors’ strength. In 2021, the company was making losses, but by 2025, it turned profitable with revenues of over ₹8,000 crores and profits close to ₹800 crores. This transformation has been nothing short of remarkable.
The stock price reflects this turnaround as well. Trading at around ₹19,850 in September 2025, the stock has given a jaw-dropping 1,585% return over the past five years. Investors who believed in the company early on have seen their money grow many times over.
Key Strengths
Commercial vehicle dominance: Around 70% of its revenue comes from this segment, supported by India’s growing logistics and infrastructure needs.
Defense contracts: Recently, Force Motors secured a major ₹4,150 crore defense order to supply vehicles to the Indian Army and Air Force, which adds strong revenue visibility.
Partnerships with global brands: Long-standing ties with Mercedes-Benz, BMW, and Rolls-Royce ensure steady business and access to world-class technology.
Promoter commitment: With over 61% promoter holding, management stability and alignment with shareholders are strong.
Challenges Ahead
While the company looks strong, there are some challenges. Its stock valuation is on the higher side, meaning future performance needs to match investor expectations. Also, Force Motors has been slower in investing in electric vehicles compared to peers, which could affect its competitiveness in the future. Dependence on defense contracts and OEM partnerships also adds some risk.
Looking Forward
Force Motors has come a long way and continues to build on its strong foundation. Its focus on innovation, global partnerships, and new opportunities like defense vehicles and electric mobility will be key for the next phase of growth.
For investors, this stock has proven to be a multibagger. However, with high valuations and market volatility, a cautious and long-term approach is wise.
In short, Force Motors is a shining example of how a company can reinvent itself and thrive in a competitive industry. With its strong track record and ambitious plans, it remains a company to watch closely.
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