Force Motors, a relatively small player, has benefited from the revival in automobile demand. The company reported a net profit of `10.9 crore in the June quarter, as against a loss of 6crore in the June 2009 quarter. Force Motors operates in different segments of utility vehicles, including tractors. The company is now also looking to enter the passenger-car segment through a sports utility vehicle which will be launched this year. Along with the new launches and revival in demand, the company is expected to report strong growth in revenue and net profits this year. However, investors need to be careful as the stock has risen over 500 per cent in the last one year and now trades at 29 times its annualised June quarter earnings. That is far higher than the industry average as well as its larger and stronger peers.
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