2 smallcap auto stocks hit new highs; zoom up to 232% in CY25. Do you own?

Shares of Force Motors (₹21,585) and SML Isuzu (₹4,413.60) have hit their respective new highs, surging 5 per cent each on the BSE in Thursday's intra-day trade.

Force Motors, SML Isuzu share price

 

Shares of Force Motors (₹21,585) and SML Isuzu (₹4,413.60) hit their respective new life-time highs, surging 5 per cent each on the BSE in Thursday's intra-day trade.

 

In the past one month, the stock price of Force Motors and SML Isuzu have rallied 26 per cent and 32 per cent, respectively, after these firms reported Q1 strong earnings. In comparison the BSE Sensex remained flat. Meanwhile, thus far in the calendar year 2025 (CY25), the stock price of these smallcap automobile companies have zoomed 232 per cent and 214 per cent, respectively, as against a 5 per cent gain in the benchmark index.  READ STOCK MARKET LATEST UPDATES TODAY LIVE

Why have these smallcap automobile stocks outrun markets?

 

For April to June 2025 quarter (Q1FY26), Force Motors reported a 54 per cent year-on-year (YoY) jump in standalone profit before tax (PBT) at ₹286.54 crore. The company had posted PBT of ₹185.66 crore in the same quarter last fiscal. Revenue from operations grew 21.9 per cent YoY at ₹2,297 crore. Profit after tax (PAT) increased 55 per cent to ₹185.22 crore from ₹119.59 crore. In Q1FY26, the company's domestic sales jumped 26.14 per cent to 9,013 units, as against 7,145 units sold in Q1FY25. 

 

Force Motors’ leading position in the domestic light commercial vehicle (LCV) passenger segment, presence across multi-utility vehicles (MUVs) and sports utility vehicle (SUVs) segments, and well-established position in the automotive component business with long standing relationships with reputed original equipment manufacturers (OEMs) resulting in a diversified revenue stream.

 

Operating performance is expected to remain strong in the near to medium term, with Force Motors maintaining healthy revenue growth, underpinned by strong demand for its products in the domestic market, according to CRISIL Ratings.

 

Crisil Ratings believes Force Motors will continue to benefit from its leadership position in the niche LCV product segments, its improving revenue diversity and healthy operating profitability. Furthermore, the company is expected to sustain its strong financial risk profile, due to adequate annual cash generation, which will buttress the impact of its sizable capex plans. Additionally, the ratings also factor in timely support, if necessary, from Force Motor’s parent, Jaya Hind Industries Pvt Ltd (JHIPL), a key holding company of the Dr Abhay Firodia group.

 

Meanwhile, in Q1FY26 SML Isuzu reported 44 per cent YoY jump in PAT at ₹66.96 crore. The company had posted PAT at ₹46.39 crore in Q1FY25. Revenue from operations grew 13 per cent YoY to ₹845.89 crore from ₹746.01 crore in a year ago quarter.

 

For the first quarter of fiscal year 2025-26, SML Isuzu reported a 12.5 per cent YoY jump in total vehicle sales of 4,926 units compared to 4,379 units in the corresponding period last year. Cargo vehicle sales during this three-month period surged 46.3 per cent to 1,282 units from 876 units, while passenger vehicle sales grew 4.0 per cent to 3,644 units from 3,503 units.

 

On August 19, 2025, the company’s board approved the change of name of the company from ‘SML Isuzu Limited’ to ‘SML Mahindra Limited’.

 

In April 2025, Mahindra & Mahindra (M&M) had entered into an agreement to acquire 58.96 per cent stake in SML Isuzu to establish a strong presence in the > 3.5T commercial vehicle segment. This acquisition aims to leverage synergies in areas like cost, network, brand, manufacturing, talent, and product complementarities between M&M and SML Isuzu.

 

M&M already has a strong presence in the small commercial vehicle (SCV) goods-carrier segment. The company can use SML Isuzu’s Intermediate Light Commercial Vehicle (ILCV) passenger-carrier platform to expand into the ILCV goods segment as well. Also, Mahindra’s vast network could help further ramp-up volumes of SML Isuzu’s product, believe analysts.