Forbes & Co (502865)

FairStock Score: 14/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter remains profitable: ₹4 crore net profit on ₹18 crore sales, implying roughly 22% margin.
• Trailing ROE of 14.16% and ROCE of 15.79% show decent capital efficiency if stabilised.
• Company is still earning profits despite a sharp downturn, not incurring losses.
• Price near 52-week high reflects market interest, though valuation is not supported by fundamentals.

Concerns

• Sales growth -55.75% and profit growth -55.89% indicate severe business contraction.
• P/E of 18.61 and P/B of 5.14 are expensive for a deteriorating household-appliances company.
• Piotroski F-Score of 3/9 signals weak financial health.
• No dividend; annualising latest quarter profit implies forward P/E near 49x against ₹784 crore market cap.

AI Analysis

When I look at Forbes & Co, I am reminded of Graham's dictum: price is what you pay, value is what you get. The market is paying ₹607.55, at the top of the 52-week range, but the business is contracting. Sales growth is minus 55.75% and profit growth is minus 55.89%. Value investing requires a margin of safety; I see the opposite here. A P/E of 18.61 and a P/B of 5.14 on a shrinking household-appliances company is not a value proposition. Book value is only ₹118.20, so I am being asked to pay over five times book for an enterprise losing momentum. The latest quarter shows sales of ₹18 crore and net profit of ₹4 crore. Annualising that profit gives roughly ₹16 crore, while the market cap is ₹784 crore. That implies a forward-looking earnings multiple near 49 times. There is no dividend yield, so I am not paid to wait for a recovery. This is a hope price, not a Graham price. The Piotroski F-score of 3/9 is a red flag. It tells me the financial health is weak. Trailing ROE of 14.16% and ROCE of 15.79% look respectable, but they may belong to a stronger past, not the current downturn. Household appliances is a competitive, cyclical business; I do not see a durable moat here. Debt-to-equity is not disclosed, so I cannot judge leverage risk properly. The FairStock score of 14 out of 100 marks this as risky, and I agree. I would need to see sales stabilise, leverage disclosed, and a much lower price before this deserves my capital. Until then, this remains a pass.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer