Shares of small industrial automobile (CV) and multi-utility automobile (MUV) maker Power Motors jumped over 15.5 per cent to Rs 19,796 apiece on the NSE in Thursday’s commerce, hitting 52-week excessive of Rs 20,500. The rally got here after the corporate reported a stable 52 per cent on-year rise in internet revenue to Rs 176 crore for the June quarter (Q1 FY25), powered by sturdy home demand and better volumes. Here’s what’s driving the rally:
Earnings Assessment
Income from operations rose 22 per cent year-on-year to Rs 2,297 crore, led by sturdy efficiency of fashions like Urbania, Traveller and Trax. The corporate mentioned home gross sales volumes had been up 26 per cent, with over 90 per cent of its gross sales coming from India. Administration credited inside efficiencies and a pointy deal with buyer wants for the sturdy displaying.
Zero debt, defence order enhance sentiment
Traders cheered the corporate’s zero-debt stability sheet, highlighting sturdy monetary self-discipline. The inventory additionally gained from a March 2025 defence automobile order, additional cementing Power’s place within the specialised autos phase. Moreover, Power Motors continues to provide engines for BMW and Mercedes-Benz in India.
Replenish 200% YTD, 20x in 5 years
Power Motors shares have rallied 200 per cent up to now in 2025 and have risen 20-fold over the previous 5 years. In 2023 and 2024 alone, the inventory surged 142 per cent and 94 per cent, respectively. Buying and selling volumes had been 5 instances the month-to-month common, indicating sturdy investor curiosity post-results.
Market Outlook
With sturdy home demand, no debt, and diversification into defence and luxurious auto manufacturing, analysts imagine Power Motors is well-positioned for continued upside — although valuations could begin to look stretched after this 12 months’s large run.
