Forbes & Company Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹271.10−₹1.05 (−0.39%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Forbes & Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Forbes & Company Limited, together with its subsidiaries, engages in the real estate development activities in India and internationally. It operates through Coding and Industrial Automation and Real Estate segments.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees90

Annual revenue₹76 Cr

How does it make money?

Turns over ₹76 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 90 employees supports ₹84.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin19.1%

Net margin17.6%

Revenue / employee₹84.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 8.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE8.6%

ROE6.7%

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +64% while net margin moved -96% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+64%

Margin effect-96%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 0.82 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

51/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

28.4x

3Y Median

4.1x

40 monthly readings · mean 6.0x · range 1.9x–28.3x

Sector Median

68.5x

median of 3 sector peers

⚠️Current valuation is approximately 586% above its 3y median of 4.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 59% below the peer median of 68.5x.

vs. its own history

Expensive

4.1x median over 40 months · +586%

vs. sector peers

Cheap

68.5x median of 3 peers · -59%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

28.4x

P/B

1.73x

EV/EBITDA

24.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -2.9% to 19.1% over 3 years.
Debt is being paid down
Total debt is down 32% over 3 years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 85.4% to 6.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 80.8% to 8.6% — often a sign of competition or overexpansion.
Valuation above its historical average
At 28.4x the stock trades 586% above its own median of 4.1x.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.01x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Profit is decliningFinancial
Net profit is down 93% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -2.9% to 19.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 59% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.01x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 586% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 85.4% to 6.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 18.0% CAGR
Latest reported year was -40.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹350 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.54

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.01x

High

High leverage

Revenue Growth (YoY)

-40.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-25.9%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹271.1

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

18.2%

Good

Strong bottom-line conversion

Current Ratio

2.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

295.2 / 292.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

18.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹125 Cr	₹198 Cr	₹76 Cr	+18.0%
EBITDA	-₹1 Cr	₹12 Cr	₹31 Cr	₹14 Cr	—
EBITDA Margin	-2.9%	10.0%	15.4%	19.1%	—
PAT (Net Profit)	₹192 Cr	-₹4 Cr	₹123 Cr	₹13 Cr	-58.8%
EPS	₹150.77	₹-3.5	₹96.42	₹10.53	-58.8%
ROE	85.4%	-3.2%	55.9%	6.7%	—
ROCE	80.8%	14.5%	16.5%	8.6%	—
Total Debt	₹9 Cr	₹5 Cr	₹5 Cr	₹6 Cr	-12.1%
Free Cash Flow	₹39 Cr	-₹21 Cr	-₹13 Cr	-₹8 Cr	—

🟢 Revenue has grown at 18.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹14 Cr.

🟢 EBITDA Margin has risen from -2.9% to 19.1% over 3 years (+21.9 pts).

🔴 PAT (Net Profit) has shrunk at 58.8% a year over 3 years.

🔴 EPS has shrunk at 58.8% a year over 3 years.

🔴 ROE has fallen from 85.4% to 6.7% over 3 years (-78.7 pts).

🔴 ROCE has fallen from 80.8% to 8.6% over 3 years (-72.2 pts).

🟢 Total Debt has shrunk at 12.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹39 Cr to -₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹255 Cr

Total Liabilities

₹55 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

3.3%

Insider Holding

80.3%

Corporate Actions

Ex-Dividend Date

24 Aug 2022

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 mixed1 negative3 general

Forbes & Company Share Price rises 9.95% | Stock analysis

Univest, 07 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Forbes & Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Forbes & Company seeks shareholder nod for independent director commission

scanx.trade, 04 SeptCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Shapoorji Pallonji Group stocks zoom 20% as RBI asks Tata Sons to list

Business Standard, 15 Sept

Eureka Forbes vs Nifty 50: Share Price Performance Compared

Univest, 21 Sept

Eureka Forbes promoter pledges additional 5.9% stake to lenders

scanx.trade, 24 AugOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Watch Items

Revenue growth is negative (-40.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate11.9/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate7.5/15

🔴ValuationDemanding6.1/15

🔴RiskHigh3.3/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 13% a year18.0% CAGR
✓EBITDA margin holds above 17%19.1%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 8%8.6%