Stock Performance Overview
The stock price of Forbes Precision Tools & Machine Parts Ltd fell to Rs.133.1 today, establishing both a 52-week and all-time low. Despite a modest gain of 0.51% on the day, the stock remains substantially below its moving averages, trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day averages. This indicates sustained downward momentum over multiple time horizons.
Comparatively, the Sensex recorded a gain of 0.23% on the same day, highlighting the stock’s relative weakness. Over the past week, the stock declined by 5.16%, significantly underperforming the Sensex’s 0.63% fall. The divergence is more pronounced over longer periods: a 14.69% drop in one month versus the Sensex’s 0.90% decline, and a 19.08% fall over three months compared to the Sensex’s 4.80% gain.
Year-to-date and over the last twelve months, Forbes Precision Tools & Machine Parts Ltd has delivered a negative return of 51.86%, while the Sensex has appreciated by 8.61%. The stock’s three-year and five-year returns remain flat at 0.00%, starkly contrasting with the Sensex’s 39.49% and 77.73% gains respectively. Over a decade, the Sensex surged by 224.94%, underscoring the stock’s prolonged stagnation.
Financial Metrics and Market Context
Forbes Precision’s financial profile presents a mixed picture. The company maintains a high return on equity (ROE) of 18.80%, signalling efficient use of shareholder capital. Its debt-to-equity ratio averages at zero, indicating a low leverage position which typically reduces financial risk. The current price-to-book value stands at 4.6, suggesting a valuation that reflects the company’s profitability and asset base.
Despite these positives, the company’s operating profit has declined at an annualised rate of 5.76% over the past five years, indicating challenges in sustaining growth. The latest quarterly results for September 2025 were flat, showing no significant improvement in profitability. Over the past year, profits have decreased by 3%, aligning with the stock’s negative price performance.
At the current price level, the stock offers a dividend yield of 3.7%, which is relatively high and may provide some income support to shareholders amid price weakness.
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Promoter Shareholding and Market Impact
A notable factor influencing the stock’s performance is the high proportion of pledged promoter shares, which stands at 94.4%. This level of pledge is significant and can exert additional downward pressure on the stock price, especially during periods of market volatility or declining prices. The high pledge ratio may also affect market sentiment and liquidity considerations.
The stock’s recent trend shows a slight reversal after seven consecutive days of decline, with a modest gain recorded today. However, the overall trend remains negative given the stock’s position below all key moving averages and its extended period of underperformance relative to the BSE500 index and sector peers.
Relative Sector and Market Comparison
Within the industrial manufacturing sector, Forbes Precision Tools & Machine Parts Ltd’s performance has lagged behind. While the sector has shown resilience and some positive returns over recent months, this stock’s decline of 19.08% over three months contrasts with the sector’s inline performance today and broader market gains. The stock’s underperformance extends across multiple time frames, including one year and three years, where it has failed to generate positive returns.
This persistent underperformance is reflected in the company’s Mojo Score of 34.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 1 July 2025. The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation within its sector.
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Summary of Key Metrics
To summarise, Forbes Precision Tools & Machine Parts Ltd is currently trading at an all-time low of Rs.133.1, with a year-to-date and one-year return of -51.86%. The stock’s performance is considerably weaker than the Sensex and BSE500 indices over comparable periods. Despite a strong ROE of 18.80% and low leverage, the company’s operating profit has declined at an annualised rate of 5.76% over five years, and recent quarterly results have been flat.
The high promoter share pledge ratio of 94.4% adds a layer of complexity to the stock’s price dynamics, potentially contributing to downward pressure. The stock’s valuation metrics, including a price-to-book ratio of 4.6 and a dividend yield of 3.7%, reflect a balance between profitability and market valuation considerations.
Overall, the stock’s current position highlights a challenging environment for Forbes Precision Tools & Machine Parts Ltd within the industrial manufacturing sector, as it continues to navigate a period of subdued growth and market valuation pressures.
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