Forbes Precision Tools & Machine Parts Ltd Hits All-Time Low Amid Prolonged Downtrend

Stock Price Performance and Market Context

As of 29 Dec 2025, Forbes Precision Tools & Machine Parts Ltd is trading just 0.78% above its 52-week low of ₹140.4, signalling a near-record trough in its share price. The stock closed with a modest gain of 0.46% on the day, slightly outperforming the Sensex, which declined by 0.08%. However, this uptick follows a five-day consecutive decline, indicating a tentative pause in a broader downward trend.

Over the past year, the stock has delivered a negative return of -48.94%, markedly underperforming the Sensex’s positive 7.97% gain during the same period. Year-to-date performance is similarly weak, with a decline of -50.12% compared to the Sensex’s 8.75% rise. The underperformance extends to shorter and longer timeframes as well, with the stock falling 11.45% in the last month and 17.13% over three months, while the Sensex posted gains of 5.74% in the latter period.

Longer-term comparisons reveal a stagnant share price over three, five, and ten years, with zero growth recorded, in stark contrast to the Sensex’s robust gains of 39.00%, 78.47%, and 225.83% respectively. This highlights a persistent lack of capital appreciation for shareholders over an extended horizon.

Financial Metrics and Valuation

Forbes Precision Tools & Machine Parts Ltd’s financial performance has been subdued, with operating profit declining at an annualised rate of -5.76% over the past five years. The company reported flat results in the quarter ended September 2025, indicating limited momentum in earnings growth.

The return on equity (ROE) stands at a relatively high 18.8%, reflecting efficient utilisation of shareholder funds. However, this is juxtaposed against an expensive valuation, with a price-to-book value ratio of 4.8, suggesting that the market price remains elevated relative to the company’s net asset value despite the share price decline.

Profitability has also contracted, with net profits falling by 3% over the last year. Despite this, the stock offers a comparatively high dividend yield of 3.53%, which may provide some income support to investors amid the price weakness.

Shareholding and Market Pressure

A significant factor contributing to the stock’s pressure is the high level of promoter share pledging, with 94.4% of promoter shares pledged as collateral. This elevated pledge ratio can exert additional downward pressure on the stock price, particularly in falling markets, as forced selling or margin calls may arise.

The company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal reliance on external borrowings. This financial prudence contrasts with the share price weakness, suggesting that leverage is not a primary driver of the current valuation levels.

Relative Sector and Market Performance

Forbes Precision’s share price has consistently underperformed the BSE500 index over multiple timeframes, including the last three years, one year, and three months. This underperformance relative to a broad market benchmark highlights the stock’s challenges in delivering shareholder value compared to peers and the wider market.

Additionally, the stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bearish trend. This technical positioning further emphasises the stock’s current weakness within the industrial manufacturing sector.

Mojo Score and Analyst Ratings

The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell as of 1 July 2025. This represents an improvement from a previous Strong Sell rating, indicating a slight easing in negative sentiment but still reflecting caution. The Market Capitalisation Grade is 4, suggesting a mid-tier market cap classification within the industrial manufacturing sector.

These ratings encapsulate the company’s recent financial and market performance, reinforcing the subdued outlook reflected in the share price.

Summary of Key Data Points

• Stock price near 52-week low at ₹140.4, just 0.78% above the lowest point

• One-year return of -48.94% versus Sensex gain of 7.97%

• Operating profit declining at -5.76% annualised over five years

• ROE of 18.8% alongside a price-to-book ratio of 4.8

• High promoter share pledge at 94.4%

• Low debt-to-equity ratio averaging zero

• Dividend yield of 3.53% at current price

• Trading below all major moving averages

• Mojo Grade currently Sell, upgraded from Strong Sell

The combination of these factors paints a comprehensive picture of Forbes Precision Tools & Machine Parts Ltd’s current market standing, characterised by a prolonged period of price weakness and financial headwinds within the industrial manufacturing sector.

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