Introduction

Force Motors has been one of the standout performers in 2025, with the stock surging over 216% year-to-date and more than 50% in just the last month. For adequate disclaimer, we recommended this stock to our clients at ~9000 and it has doubled in ~4 months. In this post, we highlight how one can select such stocks using simple visualization of price actions. Such steps often repeat and therefore we thought it would be useful to share our learnings and success story. Here’s  quick summary of what happened:

TLDR:

• Force Motors (NSE: FORCEMOT) doubled—from ~₹8,800 to ~₹18,000—between late March and 29 July 2025.

• Breakout Catalyst: a fresh 52-week-high on 15 April with volumes > 2× 20-day average.

• Relative-Strength Edge: while the CNX Small-Cap Index kept making lower lows, Force Motors refused to break support and quietly marched higher.

• Confirming Factors: improving fundamentals (record quarterly exports, higher CV volumes), easing commodity costs, and a debt-light balance sheet.

• Lesson: Combining simple price-pattern recognition with relative-strength analysis and risk management can unearth multi-baggers before the crowd notices.

Understanding Technical Setup: Price Action Before the Big Rally

9 Month Accumulation Base: From June 2024 to March 2025, Force Motors traced a broad rectangle between ₹6,800–₹8,800 (see chart below; black horizontal lines in the chart). Sideways  consolidations of this length often:

• • Shake out weak hands

  • Allow institutions to quietly accumulate stock

  • Compress volatility, creating the energy for a sharp move later

Divergence with the Broader Market: In early 2025 the broader CNX SmallCap index continued to make lower lows, reflecting weakness across the small‑cap space. Force Motors, however, held its previous lows and quietly started to inch higher. This positive divergence is a classic relative-strength clue: the stock began outperforming its peer group well before the actual price breakout.

Trigger – 52 week high with above average Volume: The decisive entry point came when the stock broke out above its 52‑week high on strong, above‑average volume. This bullish pattern signaled that institutional accumulation was underway and that the stock was exhibiting relative strength versus its benchmark.  Such divergences often precede big moves, because they highlight businesses that are fundamentally stronger than the crowd. The subsequent rally carried the stock to more than 100% gains from the breakout point.

Stitching the Fundamentals

In March 2025 the company announced a ₹4,150 crore defense order to supply 2,978 Gurkha Light Vehicles to the Indian Army and Air Force. This contract underscored the robustness and reliability of Force Motors’ vehicles and added to investor confidence. The Force Gurkha is renowned for its 4×4 capability, high ground clearance and ability to wade through 700 mm of water. Securing such an order not only boosted the top line but also signaled the firm’s growing relevance in India’s defense ecosystem. Force Motor’s fundamentals have been improving year on year as evident in the table below. Additionally, both FIIs and DIIs have been increasing stake in this stock further adding to conviction.

The company delivered a stellar set of Q1 FY26 results. Net profit surged 52% year-on-year to ₹176 crore and revenue rose 22% to ₹2,297 crore. Profit after tax jumped 55% to ₹185 crore, while profit before tax increased to ₹286.54 crore. Domestic sales volumes were up 26%, driven by strong demand for Urbania, Traveller and Trax models.

On the day following the Q1 results announcement, the stock jumped 20% to hit a record high of ₹20,563, with trading volume five times the usual average. That move brought the year-to-date gain to 216%, while the stock has delivered a 20× return over the past five years. By comparison, the Sensex is up only around 5% in 2025, illustrating just how exceptional Force Motors’ run has been.

Force Motors also manufactures engines for Mercedes‑Benz and BMW in India and has a joint venture with Rolls‑Royce Power Systems, which adds an element of diversification and technology transfer.

Conclusion

This case study illustrates the power of combining technical signals with fundamentals. A new‑high breakout on strong volume in a stock that is beating its benchmark and posting robust earnings can lead to outsized returns. We wrote another similar article about picking multibagger using charts. You can read it here.

Nevertheless, such explosive moves are rare and always carry risk. Investors should conduct thorough due diligence, maintain disciplined position sizing and use stop‑losses to protect capital. Past performance is not a guarantee of future results.

Disclaimer::This research note is issued solely for educational and informational purposes. It does not constitute investment advice or a solicitation to buy, sell or hold any security. Readers should assess their own risk appetite and consult their SEBI‑registered investment advisor before acting on any information herein. Coinstreet and its affiliates may, from time to time, have positions in the securities discussed or may have provided advisory services to clients regarding them. While every effort is made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information.