Forbes & Company Hits 52-Week Low Amid Broader Market Downturn and Debt Concerns

Forbes & Company, a microcap player in the engineering and industrial equipment sector, has experienced significant activity today, hitting a new 52-week low of Rs. 265. This decline comes amid a broader market downturn, with the Sensex opening lower and currently trading down by 0.47%. Despite the recent drop, Forbes & Company has outperformed its sector by 2.41% today, indicating some resilience in its performance.
The stock has faced challenges over the past year, with a notable decline of 45.47%, contrasting sharply with the Sensex's modest gain of 0.36%. Key financial metrics reveal a high Debt to EBITDA ratio of 9.65 times, raising concerns about the company's ability to service its debt. Additionally, net sales have decreased at an annual rate of 41.38% over the last five years, while operating profit has also declined.

On a positive note, Forbes & Company reported strong results in December 2024, with net sales growing by 173.02% and a highest PAT of Rs. 9.50 crore. The company boasts a high return on equity (ROE) of 548.28%, suggesting efficient management. However, with 98.25% of promoter shares pledged, the stock remains under pressure in the current market environment.