Current Rating and Its Implications
The Sell rating assigned to Forbes & Company Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its peers in the near to medium term. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential.
Quality Assessment
As of 03 January 2026, Forbes & Company Ltd holds an average quality grade. This reflects a middling position in terms of operational efficiency, earnings consistency, and business model robustness. The company’s long-term growth has been notably weak, with net sales declining at an annualised rate of -41.16% over the past five years. Such a contraction in core revenue streams raises concerns about the sustainability of earnings and the company’s competitive positioning within the Electronics & Appliances sector.
Valuation Perspective
The valuation grade for Forbes & Company Ltd is currently assessed as fair. This suggests that while the stock is not excessively overvalued, it does not present a compelling bargain either. Investors should note that the market capitalisation remains in the microcap range, which often entails higher volatility and liquidity risks. The stock’s recent price movements, including a 2.36% gain on the latest trading day and a 4.97% increase year-to-date, have not been sufficient to offset the broader negative sentiment reflected in its one-year return of -27.44%.
Register here to know the latest call on Forbes & Company Ltd
- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade is currently flat, indicating stagnation in key financial metrics. The latest quarterly results ending September 2025 reveal a sharp decline in performance: net sales fell by 59.8% to ₹18.70 crores compared to the previous four-quarter average, while profit after tax (PAT) dropped by 62.3% to ₹6.33 crores. A significant portion of profit before tax (68.50%) is derived from non-operating income, which raises questions about the core business profitability. Additionally, the company’s promoter shareholding is heavily pledged at 98.25%, which could exert downward pressure on the stock price in volatile or falling markets.
Technical Outlook
The technical grade for Forbes & Company Ltd is bearish. Despite some short-term gains—such as a 10.72% rise over the past week and a 6.14% increase in the last month—the stock has underperformed over longer periods. It has delivered negative returns of -8.10% over three months, -18.09% over six months, and -27.44% over the past year. This underperformance is also evident when compared to the BSE500 index, where the stock has lagged over one year, three years, and the last three months, signalling weak momentum and investor sentiment.
Investor Considerations
For investors, the current Sell rating suggests caution. The combination of declining sales, flat financial trends, high promoter pledge levels, and bearish technical signals points to potential risks ahead. While the valuation is fair, it does not compensate adequately for these risks. Investors should carefully weigh these factors against their risk tolerance and investment horizon before considering exposure to Forbes & Company Ltd.
Summary of Key Metrics as of 03 January 2026
- Mojo Score: 34.0 (Sell Grade)
- Market Capitalisation: Microcap segment
- 1-Day Return: +2.36%
- 1-Week Return: +10.72%
- 1-Month Return: +6.14%
- 3-Month Return: -8.10%
- 6-Month Return: -18.09%
- Year-to-Date Return: +4.97%
- 1-Year Return: -27.44%
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Conclusion
In conclusion, Forbes & Company Ltd’s current Sell rating by MarketsMOJO reflects a comprehensive assessment of its operational challenges, subdued financial performance, and technical weaknesses as of 03 January 2026. Investors should approach this stock with caution, recognising the risks posed by declining sales, high promoter pledge levels, and negative price momentum. While short-term rallies have occurred, the overall outlook remains subdued, warranting a conservative investment stance until clearer signs of recovery emerge.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
