Share prices of utility vehicles and agricultural tractors manufacturer Force Motors (formerly Bajaj Tempo) have surged by 36% in the past seven trading sessions, even as the benchmark S&P Sensex index was up only 4.7% in the same period.

Force Motors shares ended 7.67% higher at Rs 3,041 on Thursday, reaching the highest level since 5 August 2015.

The rally in the stock is largely led by growing optimism among investors about the company's earning potential.

Overall, the share price of the company went up by a whopping 435% in the past 14 months, compared to a closing price of Rs 569.70 on 4 August 2014. The stock hit a life-time high of Rs 3,288 on 5 August this year.

"It is net debt-free company, sitting on cash and cash equivalents of around Rs 290 crore (Rs 220/share) as on 31st March 2015," Business Standard quoted analysts at IndiaNivesh Securities as saying in a recent report.

"The company's net sale is expected to grow at the compound annual growth rate (CAGR) 21% while the company's profit is expected to grow at CAGR of 43% for FY15/FY17E," analysts said.

Force Motors had opened a new engine manufacturing and testing facility near Chennai on 21 July last. The plant is expected to receive an order to make engines for BMW India. 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% 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% rise in net profit for the fiscal year ending March 2015.