Forbes Precision Tools & Machine Parts Ltd Falls to 52-Week Low of Rs.135.05

Stock Performance and Market Context

The stock of Forbes Precision Tools & Machine Parts Ltd, a player in the Industrial Manufacturing sector, has been on a downward trajectory, hitting an intraday low of Rs.135.05 today, which also represents its all-time low. This price point reflects a sharp fall of 2.81% intraday and a day change of -2.16%, underperforming its sector by 1.18% on the same day. The stock has declined consecutively over the past seven trading sessions, accumulating a loss of 10.36% during this period.

Currently, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex opened slightly lower at 84,600.99 points, down 0.11%, and is trading near its 52-week high, just 1.76% shy of 86,159.02. The Sensex itself is positioned below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed market signals.

Long-Term and Recent Financial Trends

Over the past year, Forbes Precision Tools & Machine Parts Ltd has delivered a negative return of 51.16%, significantly underperforming the Sensex, which posted an 8.21% gain over the same period. The stock’s 52-week high was Rs.299.90, underscoring the extent of the recent decline.

Financially, the company has experienced a contraction in operating profit, with a compound annual growth rate of -5.76% over the last five years. The latest quarterly results for September 2025 were largely flat, reflecting limited growth momentum. Profitability has also seen a slight dip, with profits falling by 3% over the past year.

Shareholding and Valuation Considerations

A notable concern is the high level of promoter share pledging, with 94.4% of promoter shares pledged. This factor often adds downward pressure on stock prices, especially in declining markets, as it may trigger forced selling or heightened investor caution.

Despite the challenges, the company maintains a low average debt-to-equity ratio of zero, indicating minimal leverage. Its return on equity (ROE) stands at a robust 18.80%, reflecting efficient management of shareholder funds. The price-to-book value ratio is 4.7, suggesting a valuation that aligns with its earnings quality and asset base.

Dividend Yield and Income Aspect

At the current price level, Forbes Precision Tools & Machine Parts Ltd offers a relatively high dividend yield of 3.61%, which may be of interest to income-focused investors. This yield is notable given the stock’s recent price weakness and reflects the company’s ongoing commitment to shareholder returns despite subdued profit growth.

Mojo Score and Analyst Ratings

The company’s current Mojo Score is 34.0, categorised as a Sell grade. This represents an improvement from a previous Strong Sell rating as of 1 July 2025, indicating some stabilisation in the company’s outlook, albeit still on the cautious side. The market capitalisation grade is rated 4, reflecting the company’s micro-cap status within the industrial manufacturing sector.

Comparative Sector and Market Performance

Forbes Precision Tools & Machine Parts Ltd has underperformed not only the Sensex but also the broader BSE500 index over multiple time frames, including the last three years, one year, and three months. This underperformance highlights the stock’s relative weakness within its sector and the wider market.

While the Sensex remains close to its 52-week high, the stock’s 52-week low at Rs.135.05 marks a stark contrast, emphasising the divergence between the company’s share price trajectory and the broader market trend.

Summary of Key Metrics

To summarise, Forbes Precision Tools & Machine Parts Ltd’s stock has declined sharply to Rs.135.05, its lowest level in 52 weeks and all-time trading history. The stock’s recent performance includes a 10.36% loss over seven consecutive trading days and a year-to-date return of -51.16%. The company’s financial indicators show subdued profit growth, a high level of pledged promoter shares, and a strong ROE of 18.80%. The dividend yield remains attractive at 3.61%, while valuation metrics such as price-to-book ratio stand at 4.7.

These factors collectively provide a comprehensive view of the stock’s current position within the industrial manufacturing sector and the broader market environment as of 30 Dec 2025.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →