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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 502865 | NSE: FORBESCO

Forbes & Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 5:00 pm

Market Cap 698 Cr.
Current Price 541
High / Low796/269
Stock P/E34.2
Book Value 143
Dividend Yield0.00 %
ROCE3.89 %
ROE9.62 %
Face Value 10.0
PEG Ratio0.17

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Forbes & Company Ltd

Competitors of Forbes & Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hittco Tools Ltd 8.62 Cr. 14.016.0/9.53 4.590.00 %7.27 %5.66 % 10.0
Harshil Agrotech Ltd 667 Cr. 13.113.7/0.29112 1.200.00 %16.4 %13.5 % 1.00
Gujarat Toolroom Ltd 202 Cr. 12.645.9/10.81.72 14.87.91 %179 %170 % 1.00
GTV Engineering Ltd 158 Cr. 505640/34424.1 1250.00 %12.7 %13.5 % 10.0
Galaxy Agrico Exports Ltd 16.6 Cr. 60.868.2/27.2184 15.70.00 %33.5 %44.8 % 10.0
Industry Average4,479.51 Cr540.8844.49119.990.44%28.65%23.58%6.27

All Competitor Stocks of Forbes & Company Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales131.36136.73116.52121.8564.4260.7511.2611.3715.5411.8987.0835.7934.66
Expenses115.37123.05113.15121.7657.0563.6014.9411.3017.0411.8183.5831.0030.45
Operating Profit15.9913.683.370.097.37-2.85-3.680.07-1.500.083.504.794.21
OPM %12.17%10.01%2.89%0.07%11.44%-4.69%-32.68%0.62%-9.65%0.67%4.02%13.38%12.15%
Other Income-42.03-2.004,294.54195.0213.648.1514.1017.40-20.242.96-1.032.312.60
Interest10.388.9810.916.514.123.51-0.900.240.390.170.800.230.20
Depreciation11.2311.418.086.824.504.491.360.410.460.350.430.380.37
Profit before tax-47.65-8.714,278.92181.7812.39-2.709.9616.82-22.592.521.246.496.24
Tax %11.69%27.32%-0.35%19.87%-223.00%51.11%-2.71%36.09%0.53%-55.95%-173.39%18.64%17.63%
Net Profit-53.22-11.094,293.80145.6640.02-4.0810.2310.75-22.713.933.395.285.14
EPS in Rs-38.52-8.563,326.29113.0131.02-3.167.938.33-17.603.052.634.093.98

Last Updated: November 6, 2024, 6:44 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,9993,0673,5463,2312,9992,8222,8532,73193251547126205
Expenses1,9482,9143,4173,1942,8922,6932,7102,70182146576124186
Operating Profit51153129371061291433011149-29219
OPM %3%5%4%1%4%5%5%1%12%10%-63%2%9%
Other Income15352651351343935-171-484,252243-1-15
Interest51799110774968910152421022
Depreciation45542275717777986841624
Profit before tax1097281-995-411-341-564,218198-2-3
Tax %24%30%54%423%26%682%126%-1%107%-0%3%122%
Net Profit845037-4889-32-3-338-1174,229192-4-3
EPS in Rs66.3231.0525.17-45.3965.49-15.075.40-251.63-60.213,278.84148.80-3.46-2.35
Dividend Payout %0%0%0%0%4%-17%93%0%0%0%44%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-40.48%-26.00%-229.73%285.42%-135.96%90.62%-11166.67%65.38%3714.53%-95.46%-102.08%
Change in YoY Net Profit Growth (%)0.00%14.48%-203.73%515.15%-421.37%226.58%-11257.29%11232.05%3649.15%-3809.99%-6.62%

Forbes & Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-27%
5 Years:-46%
3 Years:-49%
TTM:71%
Compounded Profit Growth
10 Years:%
5 Years:-32%
3 Years:%
TTM:171%
Stock Price CAGR
10 Years:35%
5 Years:59%
3 Years:49%
1 Year:99%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:-10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 3:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital13131313131313131313131313
Reserves410398431206301303251-101-15473212127171
Borrowings4169181,1801,1401,1641,1891,0701,137523288999
Other Liabilities7911,1601,1881,2201,2281,2541,5411,6951,654415467271219
Total Liabilities1,6292,4882,8112,5792,7062,7592,8742,7442,036789701421413
Fixed Assets3678781,1409971,0361,1391,1341,027598158292728
CWIP132951727494872941000
Investments11910269273808112360117145171214
Other Assets1,1291,5711,5941,4181,5241,4451,5731,5651,374513527223171
Total Assets1,6292,4882,8112,5792,7062,7592,8742,7442,036789701421413

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +95114981206717020722936620155-20
Cash from Investing Activity +-85-409-51-835-130-44-1436592161
Cash from Financing Activity +-34421-80-36-20-94-230-122-382-275-243-6
Net Cash Flow-25126-34252-53-66-3649-6527-26

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-365.00-765.00128.0036.00105.00128.00142.0029.00-412.00-239.00-38.00-7.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days656660595654605447626129
Inventory Days13713110298138155220284188533884
Days Payable15219216214011514215116299214338
Cash Conversion Cycle515017796812817713638061574
Working Capital Days1-140-28-4-34-64-13916-145-287
ROCE %12%14%11%3%5%5%7%-2%14%12%-9%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.85%73.85%73.85%73.85%73.85%73.85%73.85%73.85%73.85%73.85%73.85%73.85%
FIIs11.52%11.53%11.53%11.52%11.52%11.52%11.52%11.52%11.51%11.58%11.56%11.51%
DIIs0.12%0.62%0.11%0.11%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Government0.86%0.86%0.86%0.86%0.86%0.86%0.86%0.86%0.86%0.86%0.86%0.86%
Public13.65%13.15%13.65%13.66%13.70%13.69%13.68%13.68%13.67%13.61%13.63%13.68%
No. of Shareholders11,97112,02612,37311,72114,81914,33613,83013,58613,06712,61913,30213,128

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-3.50150.773319.02-61.00-245.95
Diluted EPS (Rs.)-3.50150.773319.02-64.00-245.95
Cash EPS (Rs.)-0.53167.513298.18-21.47-191.09
Book Value[Excl.RevalReserv]/Share (Rs.)108.74126.3563.87-66.311.09
Book Value[Incl.RevalReserv]/Share (Rs.)108.74126.3563.87-66.311.09
Revenue From Operations / Share (Rs.)97.60342.65399.062214.802117.12
PBDIT / Share (Rs.)23.06193.0065.03208.8254.53
PBIT / Share (Rs.)21.78171.9132.91133.43-21.53
PBT / Share (Rs.)18.22167.59-271.19-28.06-266.57
Net Profit / Share (Rs.)-1.81146.423266.05-96.86-267.16
NP After MI And SOA / Share (Rs.)-3.46148.823276.21-60.21-251.66
PBDIT Margin (%)23.6256.3216.299.422.57
PBIT Margin (%)22.3150.168.246.02-1.01
PBT Margin (%)18.6648.90-67.95-1.26-12.59
Net Profit Margin (%)-1.8542.73818.44-4.37-12.61
NP After MI And SOA Margin (%)-3.5443.43820.99-2.71-11.88
Return on Networth / Equity (%)-3.17117.785116.970.000.00
Return on Capital Employeed (%)17.8576.0723.2752.91-4.91
Return On Assets (%)-1.0627.37530.11-3.80-11.81
Long Term Debt / Equity (X)0.000.110.81-1.63-3.54
Total Debt / Equity (X)0.020.313.33-4.19-8.12
Asset Turnover Ratio (%)0.220.370.180.340.10
Current Ratio (X)0.890.920.720.610.61
Quick Ratio (X)0.430.400.390.340.28
Inventory Turnover Ratio (X)0.110.480.250.130.17
Dividend Payout Ratio (NP) (%)0.0043.1196.210.000.00
Dividend Payout Ratio (CP) (%)0.0037.7695.280.000.00
Earning Retention Ratio (%)0.0056.893.790.000.00
Cash Earning Retention Ratio (%)0.0062.244.720.000.00
Interest Coverage Ratio (X)18.5914.152.003.100.69
Interest Coverage Ratio (Post Tax) (X)16.0311.021.251.06-0.24
Enterprise Value (Cr.)527.13739.90782.542819.461814.70
EV / Net Operating Revenue (X)4.191.671.520.980.66
EV / EBITDA (X)17.722.979.3310.4725.80
MarketCap / Net Operating Revenue (X)4.431.711.030.770.36
Retention Ratios (%)0.0056.883.780.000.00
Price / BV (X)3.974.636.41-14.83-10.22
Price / Net Operating Revenue (X)4.431.711.030.770.36
EarningsYield-0.010.257.98-0.03-0.32

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Forbes & Company Ltd as of November 17, 2024 is: 479.89

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Forbes & Company Ltd is Overvalued by 11.30% compared to the current share price 541.00

Intrinsic Value of Forbes & Company Ltd as of November 17, 2024 is: 1,448.19

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Forbes & Company Ltd is Undervalued by 167.69% compared to the current share price 541.00

Last 5 Year EPS CAGR: 201.78%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -55.33, which is a positive sign.
  2. The company has shown consistent growth in sales (141.77 cr) and profit (11.92 cr) over the years.
  1. The stock has a low average ROCE of 6.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 139.67, which may not be favorable.
  3. The company has higher borrowings (696.31) compared to reserves (202.15), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Forbes & Company Ltd:
    1. Net Profit Margin: -1.85%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.85% (Industry Average ROCE: 28.65%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -3.17% (Industry Average ROE: 23.58%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 16.03
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.43
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 34.2 (Industry average Stock P/E: 44.49)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Forbes & Company Ltd. is a Public Limited Listed company incorporated on 18/11/1919 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L17110MH1919PLC000628 and registration number is 000628. Currently Company is involved in the business activities of Construction of buildings carried out on own-account basis or on a fee or contract basis. Company’s Total Operating Revenue is Rs. 235.05 Cr. and Equity Capital is Rs. 12.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralForbes Building, Charanjit Rai Marg, Mumbai Maharashtra 400001investor.relations@forbes.co.in
http://www.forbes.co.in
Management
NamePosition Held
Mr. Ravinder C PremWhole Time Director
Mr. M C TahilyaniNon Executive Director
Mr. Jai L MavaniNon Executive Director
Ms. Rani Ajit JadhavIndependent Director
Mr. Nikhil BhatiaIndependent Director
Mr. D SivanandhanIndependent Director

FAQ

What is the latest intrinsic value of Forbes & Company Ltd?

The latest intrinsic value of Forbes & Company Ltd as on 17 November 2024 is ₹479.89, which is 11.30% lower than the current market price of ₹541.00.

What is the Market Cap of Forbes & Company Ltd?

The Market Cap of Forbes & Company Ltd is 698 Cr..

What is the current Stock Price of Forbes & Company Ltd as on 17 November 2024?

The current stock price of Forbes & Company Ltd as on 17 November 2024 is ₹541.

What is the High / Low of Forbes & Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Forbes & Company Ltd stocks is 796/269.

What is the Stock P/E of Forbes & Company Ltd?

The Stock P/E of Forbes & Company Ltd is 34.2.

What is the Book Value of Forbes & Company Ltd?

The Book Value of Forbes & Company Ltd is 143.

What is the Dividend Yield of Forbes & Company Ltd?

The Dividend Yield of Forbes & Company Ltd is 0.00 %.

What is the ROCE of Forbes & Company Ltd?

The ROCE of Forbes & Company Ltd is 3.89 %.

What is the ROE of Forbes & Company Ltd?

The ROE of Forbes & Company Ltd is 9.62 %.

What is the Face Value of Forbes & Company Ltd?

The Face Value of Forbes & Company Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Forbes & Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE