SML Isuzu, Force Motors rally up to 47% so far in July on robust June sales

SML Isuzu rallied 15 per cent to Rs 692 in the intra-day trade today and has surged 38 per cent in the past two trading days

Shares of SML Isuzu and Force Motors continued their northward movement, hitting their respective fresh 52-week highs on the BSE in the intra-day trade on Tuesday. Thus far in the month of July, these stocks have zoomed 47 per cent and 39 per cent, respectively after reported a healthy set of sales numbers for the quarter ended June 2021.

Among individual stocks, SML Isuzu rallied 15 per cent to Rs 692 in the intra-day trade today, having surged 38 per cent in the past two trading days. The company reported 39 per cent year on year (YoY) jump in its total sales at 258 units for the month of June, as compared to 186 units sold during the same month of last year. For April-June quarter (Q1FY22), total sales grew 302 per cent YoY at 812 units as against 202 units in Q1FY21.

SML Isuzu is a manufacture of commercial vehicles such as vans, lorries, over-the-road tractors for semi-trailers etc.

According to the industry experts, after relaxations in the current lockdowns, the demand for trucks is likely to gain momentum with gradual pick-up in economy, construction & infrastructure activities, normal monsoon and last-mile transportation. Based on these factors, during the financial year 2021-22 (FY2021-22), M&HCV Truck segment is expected to grow 40-45 per cent and LCV Truck segment by 15-20 per cent.

"With enhanced focus of the government on improving the healthcare facilities across the country, demand for ambulances is likely to increase further. However, as schools & educational institutions are still closed and tourism activities not expected to pick-up soon, demand for the buses may take some more time to revive.  During FY2021-22, Bus segment is expected to grow 80-85 per cent, although on a significant lower base (19,400  sales volume achieved during FY 2020-21 against 85,800 previous fiscal)," SML Isuzu said in FY2020-21 annual report.

Meanwhile, Force Motors too hit a fresh 52-week high of Rs 1,706.25, up 4 per cent on the BSE in the intra-day trade today. The stock has rallied 27 per cent in the past three trading days.

The company’s total auto sales more-than-doubled or rose 124 per cent YoY to 1,925 units in June 2021. The car and utility vehicles company had sold a total of 860 units in June 2020. On a month-on-month (MoM) basis, the total sales grew 32 per cent from 1,460 units sold in May 2021.

While the company's domestic sales increased 107 per cent to 1,501 units, exports sales jumped by 216 per cent to 424 units in June 2021 over the same month of the previous year. Compared with May 2021, the company's domestic sales and exports have increased by 15 per cent and 175 per cent, respectively.

Force Motors is engaged in the manufacturing of light commercial vehicles and utility vehicles and engines. It is an automobile company, with a focus on design, development and manufacture of a range of automotive components, aggregates and vehicles.