Stock Performance Overview
The stock has experienced a notable decline over multiple time frames. In the last trading session, it fell by 1.70%, underperforming the Sensex which declined by 0.91%. Over the past week, the stock dropped 4.41%, compared to the Sensex’s 1.36% fall. The one-month performance shows a sharper decline of 13.56%, while the three-month return stands at -22.60%, significantly lagging behind the Sensex’s modest 2.22% decrease. The most striking figure is the one-year return, where Forbes Precision recorded a steep -43.63%, in contrast to the Sensex’s positive 7.03% gain.
Year-to-date, the stock has fallen 5.80%, again underperforming the Sensex’s 3.21% decline. Over longer horizons, the stock has shown no growth over three, five, and ten years, while the Sensex has delivered returns of 36.07%, 65.67%, and 242.82% respectively, underscoring the stock’s relative underperformance in the industrial manufacturing sector.
Intraday and Moving Average Analysis
On 20 Jan 2026, Forbes Precision touched an intraday high of ₹135, representing a 2.08% increase during the session, yet it closed lower, reflecting selling pressure. The stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a persistent bearish trend. This technical positioning suggests limited short-term momentum and continued investor caution.
Sectoral Context and Dividend Yield
The company operates within the Industrial Manufacturing sector, specifically in Electronics - Components, which itself has declined by 2.01% recently. Despite the stock’s decline, it offers a relatively high dividend yield of 3.75% at the current price, which is notable given the prevailing market conditions.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
Financial Metrics and Valuation
Forbes Precision’s financial profile presents a mixed picture. The company’s operating profit has declined at an annualised rate of -5.76% over the last five years, indicating subdued growth in core profitability. The September 2025 results were flat, signalling a lack of recent improvement in earnings.
Despite these challenges, the company maintains a high return on equity (ROE) of 18.80%, reflecting efficient management of shareholder capital. The average debt-to-equity ratio stands at zero, indicating a conservative capital structure with minimal leverage. The price-to-book value ratio is 4.5, suggesting a valuation that is fair relative to its equity base, though this is tempered by the stock’s recent price weakness.
Shareholding and Market Sentiment
A significant factor influencing the stock’s performance is the high level of promoter share pledging, with 94.4% of promoter shares pledged. This elevated pledge ratio can exert additional downward pressure on the stock price, particularly in falling markets, as it may lead to forced selling or increased risk perception among investors.
Comparative Performance and Market Capitalisation
The company’s Mojo Score currently stands at 34.0, with a Mojo Grade of Sell, an improvement from a previous Strong Sell rating as of 1 July 2025. The market capitalisation grade is 4, reflecting its relative size and liquidity in the market. The stock has underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the trend of below-par returns compared to broader market benchmarks.
Holding Forbes Precision Tools & Machine Parts Ltd from Industrial Manufacturing? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Profitability Trends
Over the past year, Forbes Precision’s profits have declined by 3%, aligning with the broader trend of negative returns in its stock price. The company’s high dividend yield of 3.7% at the current price level provides some income cushion for shareholders, despite the ongoing price depreciation.
Summary of Market Context
The stock’s recent performance reflects a combination of subdued earnings growth, high promoter share pledging, and technical weakness across multiple moving averages. While the broader industrial manufacturing sector has also faced headwinds, Forbes Precision’s relative underperformance is pronounced, with returns significantly lagging key indices and sector peers.
Trading near its 52-week low and with a consecutive two-day decline resulting in a 4.05% loss over that period, the stock’s current position underscores the challenges faced by the company in maintaining investor confidence and market valuation.
Conclusion
Forbes Precision Tools & Machine Parts Ltd’s all-time low share price marks a significant milestone in its recent market journey. The combination of weak long-term growth, high promoter share pledging, and underperformance relative to benchmarks has contributed to this outcome. The company’s financial metrics reveal strengths in management efficiency and capital structure, but these have not translated into positive stock performance in recent periods.
Investors and market participants will continue to monitor the stock’s trajectory within the context of sectoral trends and broader market conditions.
Unlock special upgrade rates for a limited period. Start Saving Now →
