Force Motors has delivered exceptional returns, with its stock price surging from around ₹1,400 to an all-time high of ₹26,486 in February 2026, representing an absolute return of nearly 1,800% over three years. As of May 20th, 2026, the stock is trading at a 24x price-to-earnings (PE) multiple, which is below its 5-year median PE of 30 and the industry average PE of 27.28. The company maintains a PEG ratio of 0.11, indicating that earnings growth is faster than valuation growth. Despite the steep run-up, Force Motors still trades at a discount to both its own historical average and sector peers, suggesting the market is factoring in continued earnings growth.
Three major auto ancillary companies are aggressively expanding their capabilities to capitalize on India's automotive transformation. Uno Minda is establishing a ₹550 crore greenfield facility in Chhatrapati Sambhajinagar, Maharashtra for high-voltage electric powertrain products for four-wheeler passenger vehicles. This represents the company's second EV powertrain plant following the ongoing Khed City facility. The project involves electric drive units (EDU) and dedicated hybrid transmission (DHT) systems, with the EDU supported by technology partner Inovance Automotive and the DHT assembled through strategic partnerships with customers. The company reported consolidated revenue of ₹19,589 crore in FY26, up 17% YoY, with net profit jumping 24% YoY to ₹1,166 crore. Samvardhana Motherson International reported Q3 FY26 revenue of ₹31,409 crore, up 14% YoY, while Endurance Technologies secured ₹1,596 crore in business orders in India, including ₹300 crore for battery packs and 16 million euros worth of business in Europe.
The expansion is driven by rising vehicle demand, premiumization trends, exports, and higher content per vehicle. According to reports from Equitymaster.com, auto ancillary stocks are benefiting from rising electronic content in vehicles, EV adoption, and strong localization trends. Uno Minda achieved record sales in its 2W Switch and 2W Light business during Q4 FY26 and secured a ₹600 crore annual peak value order for Android-based Infotainment platform and a ₹450 crore annual peak value order for 2W Lamps. Samvardhana Motherson International demonstrated volume growth across passenger vehicles and commercial vehicles in emerging markets during Q3 FY26. However, the bigger long-term question is whether companies can adapt their precision engineering capabilities toward the EV ecosystem. BMW has stated that it aims to deliver more than 10 million fully EVs by 2030, with EVs expected to account for around 50% of global sales by then. BMW India posted 83% year-on-year growth in EV sales in the first quarter of 2026, indicating the transition is already visible in India.
Force Motors operates almost like two businesses under one company - the visible consumer-facing business most people are familiar with, and the invisible B2B business. The company is mostly recognized as a maker of Traveller vans, Urbania, ambulances, buses, and Gurkha SUVs. The Traveller, a workhorse minibus, is the highest-volume product and dominates the category with over 70% market share. The company benefits immensely from its specialized manufacturing exposure, which makes the business structurally different from a conventional commercial vehicle company. Compared to larger automobile companies, Force Motors operates at a much smaller scale but leads in all growth metrics including sales, profit, margin, and capital efficiency. The company's niche positioning may be one reason behind the sharp rerating in the stock.
The companies are diversifying their product portfolios to include advanced technologies and emerging manufacturing methods. Uno Minda is focusing on electric drive units (EDU) and dedicated hybrid transmission (DHT) systems through strategic partnerships with technology partners like Inovance Automotive. Endurance Technologies is transitioning from traditional two-wheeler components to diversified EV, braking, alloy wheel, and electronics-focused mobility supplier. The company has secured ₹5,100 crore of requests for quote (RFQs) under discussion with various customers and has 16 million euros worth of business in Europe. As market expert Dipan Mehta notes, every story does not fit the traditional narrative of component disruption - some companies are in controlled transformation, moving from ICE-dependent products to engine agnostic areas.
