Godfrey Phillips and Force Motors Set for Derivatives Trading After Inclusion in F&O

Synopsis: Force Motors and Godfrey Phillips will enter the F&O segment from April 1, a move expected to boost liquidity, improve price discovery, and enhance institutional participation in both stocks.

Inclusion in the F&O segment is generally viewed as a positive development, as it enhances a stock’s liquidity and trading volumes by attracting institutional and derivatives-focused participants. It also improves price discovery, as futures and options markets reflect forward-looking expectations, reducing inefficiencies and narrowing bid-ask spreads over time.

Additionally, F&O availability enables investors to hedge their positions and manage risk more effectively, making the stock more attractive for sophisticated market participants. The stringent SEBI eligibility criteria further ensure that only fundamentally strong and liquid stocks qualify, reinforcing investor confidence and reducing the scope for price manipulation.

Impact of F&O Inclusion on Circuit Limits: When a stock joins the F&O segment, its regular price limits in the cash market are usually removed or relaxed. This happens because derivatives trading allows investors to hedge and balance trades, which naturally reduces big price swings. Instead of fixed limits, the exchange uses tools like margin requirements and position limits to keep prices stable.

As of now, the total number of stocks available in the F&O segment stands at 206, reflecting a diverse mix of large-cap and liquid companies. This offers investors a wide range of opportunities for derivatives trading and risk management.

Force Motors Ltd

Force Motors Ltd was established in 1958 and is the flagship company of the Abhay Firodia group. The company manufactures fully vertically integrated small and light CVs, multi-utility vehicles, and agricultural tractors, which it supplies to various countries in the Middle East, Asia, Latin America, and Africa.

With a market capitalization of Rs 26,776 crore, the share of the company today opened at Rs 21,154.45 per share, from its previous day’s close of Rs 21,594 per share. Force Motors Ltd. will enter the F&O segment from April 1, with derivatives trading subject to NSE eligibility norms and updated liquidity thresholds under revised SEBI rules.

Financial Highlights: The revenue from operations grew by 13 percent to Rs 2,129 crore in Q3 FY26 from Rs 1,889 crore in Q3 FY25, and EBIDT grew by 61 percent to Rs 374 crore in Q3 FY26 from Rs 232 crore in Q3 FY25. Accompanied by a net profit growth of 121 percent to Rs 406 crore in Q3 FY26 from Rs 115 crore in Q3 FY25, resulting in an EPS growth of 252 percent to Rs 308.21 per share in Q3 FY26.

Godfrey Phillips India Ltd

Godfrey Phillips India Ltd (GPIL), a flagship company of the Modi Enterprises KK Modi Group, is a leading Indian FMCG company, holding a healthy stake in the organized domestic cigarette market. It manufactures renowned cigarette brands (Four Square, Red & White), distributes Marlboro under a licensing agreement with Philip Morris International, and operates the 24Seven convenience store chain.

With a market capitalization of Rs 29,695 crore, the share of the company today opened at Rs 1,988.60 per share, from its previous day’s close of Rs 1990.60 per share. Godfrey Phillips India Ltd. will see its derivatives contracts launched from April 1, meeting enhanced SEBI criteria focused on liquidity, position limits, and trading activity benchmarks.

Financial Highlights: The revenue from operations grew by 15 percent to Rs 1,829 crore in Q3 FY26 from Rs 1,589 crore in Q3 FY25, and EBIDT grew by 5 percent to Rs 380 crore in Q3 FY26 from Rs 361 crore in Q3 FY25. Accompanied by a net profit growth of 8 percent to Rs 343 crore in Q3 FY26 from Rs 316 crore in Q3 FY25, resulting in an EPS growth of 9 percent to Rs 22.01 per share in Q3 FY26.

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