Share prices of utility vehicles and agricultural tractors manufacturer Force Motors have went up by a whopping 400 percent in the past one year, even as the sectoral index was up only about 30 percent in the same period.

Further, the company saw its stock prices getting doubled in the past two weeks alone, as investors rushed to buy the stock amid growing optimism on the company's earning potential.

The share price of the company surged from Rs 569.70 on 4 August 2014, to Rs 2,856.25 on 3 August this year, registering an increase of 401 percent in 12 months. The stock gained 10 percent on Tuesday to hit a new high of Rs 3,141.85 on the Bombay Stock Exchange (BSE).

"The stock is a buy, purely on a momentum basis, because at this point, making valuations based on past performance would literally show you a 'no' but you would have to look at this as a forward looking story," Deepak Shenoy, founder of Capital Mind, told ET Now.

Force Motors opened a new engine manufacturing and testing facility near Chennai on July 21. The plant is expected to receive an order to make engines for BMW India. "Likely new order from BMW India increases visibility on margins and earnings," an analyst tracking the company told The Economic Times.

Analysts also expect the company to set up another manufacturing facility in Pune.

The company has recorded a robust increase in net profit by 84.33 percent to Rs 35.76 crore in the June quarter, compared to Rs 19.40 crore in the same quarter last year. Besides, it also posted more than 30 percent rise in net profit for the fiscal year ending March 2015.

"Force Motors is planning to scale up its business. After the expansion, it will increase its production to 50,000 units from 20,000 unites, which will mean that this can be a multi-fold size company," said Daljeet Singh Kohli, head of research, IndiaNivesh Ltd.

The company manufactures light commercial vehicles (LCV), Multi Utility Vehicles (MUV), small commercial vehicles (SCV) and tractors.