Stock Price and Market Performance Overview
On the trading day, Forbes Precision’s share price fell by 4.37%, considerably underperforming the Sensex which declined by 0.37%. This drop also placed the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. Over the past week, the stock has lost 7.01%, while the Sensex fell by 1.93%. The one-month performance shows a sharper decline of 17.19%, compared to the Sensex’s 2.28% fall.
Longer-term trends are more pronounced, with the stock down 22.59% over three months despite the Sensex gaining 1.57% in the same period. The one-year return for Forbes Precision stands at -48.60%, starkly contrasting with the Sensex’s positive 8.92% gain. Year-to-date, the stock has declined 5.76%, while the Sensex has fallen 2.23%. Notably, the stock has delivered no returns over the past three, five, and ten years, whereas the Sensex has appreciated by 38.27%, 68.04%, and 236.34% respectively.
Financial Metrics and Valuation
Forbes Precision Tools & Machine Parts Ltd operates within the Industrial Manufacturing sector and currently holds a Market Cap Grade of 4. The company’s Mojo Score stands at 34.0, with a Mojo Grade of Sell as of 1 July 2025, downgraded from a previous Strong Sell rating. This reflects a cautious stance based on the company’s financial and market performance metrics.
The company’s operating profit has contracted at an annualised rate of -5.76% over the last five years, indicating subdued growth. The September 2025 results were flat, offering little indication of improvement in profitability. Despite this, the company maintains a relatively high return on equity (ROE) of 18.80%, suggesting efficient management of shareholder funds.
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Shareholding and Risk Factors
A significant concern for the stock is the high level of promoter share pledging, with 94.4% of promoter shares currently pledged. This factor can exert additional downward pressure on the stock price, particularly in volatile or falling markets. The company’s debt-to-equity ratio remains low, averaging zero, which indicates minimal leverage and a conservative capital structure.
Despite the challenging price performance, Forbes Precision offers a dividend yield of 3.7% at the current price, which is relatively high and may provide some income cushion for shareholders. The price-to-book value ratio stands at 4.6, reflecting a valuation that is fair relative to its ROE but may be considered elevated given the recent earnings contraction and price decline.
Comparative Performance Within Sector and Market
Forbes Precision’s performance has lagged not only the Sensex but also the broader BSE500 index over multiple time frames. The stock’s negative returns over one year and three months contrast with the positive returns of the BSE500, underscoring its below-par performance within the industrial manufacturing sector and the wider market. This underperformance is evident despite the company’s operational efficiency metrics, such as its ROE and low debt levels.
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Summary of Key Financial and Market Indicators
To summarise, Forbes Precision Tools & Machine Parts Ltd is currently trading near historic lows, with a share price close to its 52-week nadir. The stock’s recent and long-term returns have been negative, with a one-year decline of 48.60% and no appreciable gains over three, five, and ten years. The company’s operating profit has contracted over the past five years, and its promoter share pledging remains a notable risk factor.
On the positive side, the company exhibits strong management efficiency as reflected in its ROE of 18.80%, a low debt-to-equity ratio, and a dividend yield of 3.7%. However, these factors have not translated into positive price performance or growth in profits, which have fallen by 3% over the past year.
Overall, the stock’s current valuation and market metrics reflect the challenges faced by Forbes Precision in delivering sustained growth and shareholder returns within the industrial manufacturing sector.
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