Forbes & Co Reports Positive Q2 Results, But Areas for Improvement Remain

Forbes & Company, a microcap engineering company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Forbes & Co has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from -12 to 7 in the last three months.

One of the major factors contributing to this positive performance is the significant growth in Profit After Tax (PAT) for the half-yearly period. The PAT has increased by 1,013.56% year on year, indicating a strong and positive trend.

However, there are some areas where Forbes & Co needs to improve. The company's operating cash flow for the year is at its lowest in the last three years, indicating a decline in cash revenues from business operations. Additionally, the net sales for the quarter have fallen by -7.8% compared to the average of the previous four quarters, showing a negative trend in the near term.

Another concern is the high non-operating income, which accounts for 38.58% of the Profit Before Tax (PBT). This suggests that the company's income from non-business activities is significant, which may not be a sustainable business model in the long run.

Furthermore, Forbes & Co has been distributing lower dividends per share (DPS) in the last five years, with the current DPS at Rs 0.00. The dividend payout ratio (DPR) is also at its lowest in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Forbes & Co has shown positive financial performance in the recent quarter, but there are some areas that require improvement. Investors are advised to hold their stocks and monitor the company's progress in the upcoming quarters.