Shares of Force Motors Limited are in focus after the automaker announced a significant contract win on Thursday, March 27. The company has secured an order to supply 2,978 Force Gurkha light vehicles (GS 4X4 800 kg Soft Top) to the Indian defence forces.
A Strategic Win in the Defence Sector
The order was placed by the Directorate General of Capability Development (CD-13/14), General Staff Branch, IHQ of the MoD (Army), New Delhi. Force Motors was selected as the L1 vendor for this contract, which will be executed in multiple tranches over a maximum of three years.
This contract underscores Force Motors’ expertise in producing rugged, high-performance vehicles for military use. The Gurkha GS 4X4 is designed to meet the Indian Army’s and Indian Air Force’s operational needs, proving its reliability in challenging terrains.
Force Gurkha: Engineered for Extreme Conditions
The Force Gurkha is known for its durability, superior off-road performance, and adaptability, making it an ideal vehicle for the armed forces. Some key features include:
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Superior ground clearance for tackling rough terrains
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Highest water-wading capacity in its class
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Advanced 4x4 drivetrain ensuring exceptional maneuverability in deserts, mountains, and other extreme environments
Force Motors has a long history of serving the defence sector, with its Gurkha LSV (Light Strike Vehicle) widely recognized for its toughness and mission-readiness.
Valuation Insights: What Should Investors Do?
With this major contract win, investors are evaluating whether Force Motors presents a buying opportunity. InvestingPro’s Fair Value tool estimates the stock’s intrinsic value at INR 10,553 per share, implying a 20.1% upside potential from the current market price (CMP) of INR 8,788.
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Force Motors’ growing presence in the defence sector strengthens its growth prospects, and with a 20.1% potential upside, the stock remains an interesting pick for long-term investors.
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