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 seen 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, marking a trend reversal after two consecutive days of decline.
The company's performance over the past year has been challenging, with a staggering 45.47% decrease compared to the Sensex's modest gain of 0.36%. Key financial metrics reveal a high Debt to EBITDA ratio of 9.65 times, indicating difficulties in servicing debt. Additionally, net sales have contracted at an annual rate of 41.38%, while operating profit has also declined by 16.73% over the last five years.

On a positive note, Forbes & Company reported a significant increase in net sales for the half-year ending December 2024, growing by 173.02%, and achieving a record PAT of Rs. 9.50 crore. The company maintains a high return on equity (ROE) of 548.28%, suggesting strong management efficiency. However, with 98.25% of promoter shares pledged, the stock faces additional downward pressure in a declining market.