Current Rating and Its Significance
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 sector peers in the near term. This recommendation is based on 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 appeal and risk profile.
Quality Assessment
As of 25 January 2026, Forbes & Company Ltd holds an average quality grade. This reflects a mixed operational performance, with certain areas showing stability while others reveal underlying challenges. Notably, the company’s net sales have experienced a significant decline over the past five years, with an annualised contraction rate of -41.16%. This poor long-term growth trend raises concerns about the company’s ability to sustain revenue momentum in a competitive electronics and appliances sector.
Moreover, the latest quarterly results ending September 2025 highlight a subdued performance. The profit after tax (PAT) for the quarter stood at ₹6.33 crores, marking a sharp fall of 62.3% compared to the average of the previous four quarters. Net sales for the same period were at a low ₹18.70 crores, underscoring the company’s struggle to generate consistent top-line growth. Additionally, non-operating income accounted for 68.50% of profit before tax (PBT), indicating that core business operations are under pressure and the company is relying heavily on ancillary income streams.
Valuation Considerations
The valuation grade for Forbes & Company Ltd is currently classified as expensive. The stock trades at a price-to-book (P/B) ratio of 2.4, which is a premium relative to its peers’ historical averages. This elevated valuation is somewhat at odds with the company’s flat financial trend and average quality metrics. Investors should note that while the stock price has delivered a 1-year return of 11.01% as of 25 January 2026, the underlying profit growth has been substantial, rising by 232.8% over the same period. This disparity results in a PEG ratio of zero, signalling that the stock’s price appreciation may not be fully supported by sustainable earnings growth.
Furthermore, the company’s return on equity (ROE) remains robust at 29.6%, which typically suggests efficient capital utilisation. However, the expensive valuation combined with flat financial trends tempers enthusiasm, as the premium pricing may not be justified by the current earnings trajectory and growth outlook.
Financial Trend Analysis
The financial trend for Forbes & Company Ltd is flat, reflecting stagnation in key performance indicators. Despite the recent spike in stock price—up 6.97% in a single day and 34.36% year-to-date—the company’s underlying fundamentals have not shown commensurate improvement. The six-month return is negative at -2.27%, indicating volatility and inconsistency in performance. This mixed trend suggests that while short-term market sentiment may be positive, the company’s financial health remains under scrutiny.
Another critical factor impacting the financial outlook is the high level of promoter share pledging. Currently, 98.25% of promoter shares are pledged, which poses a significant risk in declining markets. Such a high pledge ratio can exert additional downward pressure on the stock price if market conditions deteriorate, as forced selling or margin calls may ensue.
Technical Evaluation
From a technical perspective, Forbes & Company Ltd is rated mildly bearish. This assessment reflects recent price action and momentum indicators that suggest caution. Although the stock has experienced notable short-term gains—such as a 40.32% increase over the past month and a 34.59% rise in the last week—the longer-term technical signals do not yet confirm a sustained upward trend. Investors relying on technical analysis should therefore approach the stock with prudence, considering the potential for volatility and pullbacks.
Summary for Investors
In summary, the 'Sell' rating for Forbes & Company Ltd as of 15 September 2025 is supported by a combination of average quality, expensive valuation, flat financial trends, and mildly bearish technical indicators. As of 25 January 2026, the stock’s recent returns have been mixed, with strong short-term gains offset by longer-term challenges in revenue growth and profitability. The high promoter share pledge ratio adds an additional layer of risk that investors should carefully consider.
For investors, this rating suggests a cautious approach. While the stock may offer short-term trading opportunities given recent price movements, the fundamental and technical outlooks indicate potential headwinds. Those holding the stock should monitor quarterly results closely and remain alert to market developments that could impact the company’s valuation and financial health.
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Stock Performance Overview
Examining the stock’s recent performance as of 25 January 2026, Forbes & Company Ltd has delivered a 1-day gain of 6.97%, a 1-week increase of 34.59%, and a 1-month rise of 40.32%. The 3-month return stands at 18.82%, while the 6-month return is slightly negative at -2.27%. Year-to-date, the stock has appreciated by 34.36%, and over the past year, it has generated an 11.01% return. These figures highlight a volatile but generally positive short-term price movement, contrasting with the company’s underlying flat financial trend.
Market Capitalisation and Sector Context
Forbes & Company Ltd is classified as a microcap stock within the Electronics & Appliances sector. Microcap stocks often exhibit higher volatility and risk compared to larger companies, which is reflected in the stock’s price swings and the cautious 'Sell' rating. Investors should weigh the sector dynamics and company-specific risks carefully before making investment decisions.
Conclusion
Overall, the current 'Sell' rating by MarketsMOJO for Forbes & Company Ltd reflects a prudent investment stance grounded in the company’s average quality, expensive valuation, flat financial trends, and mildly bearish technical outlook. While recent stock price gains may attract speculative interest, the fundamental challenges and high promoter share pledging warrant caution. Investors are advised to consider these factors thoroughly and monitor ongoing developments before committing capital to this stock.
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