1. At a Glance
Forbes Precision Tools & Machine Parts Ltd is that rare Indian smallcap which actually does something tangible—like cutting metal—while the market cuts its stock price instead. Freshly demerged, clean balance sheet, promoter pedigree straight out of the Shapoorji Pallonji family album, and yet the stock is down ~41% over one year. Market cap stands around ₹696 Cr with the stock hovering near ₹135, far from its euphoric high of ₹239.
Latest quarter numbers? Revenue at ₹64.4 Cr grew ~12% YoY, but PAT dropped ~25% YoY to ₹5.59 Cr. ROCE is still a spicy 25%, debt-to-equity a chill 0.13, and dividend yield a surprisingly generous 3.7%. Basically, operations are behaving like a disciplined engineer, while the stock price is behaving like a crypto meme.
So is this a precision tools business temporarily misunderstood, or a mature industrial name that already peaked? Let’s put on our safety goggles and inspect every nut and bolt.
2. Introduction – Precision Tools, Blunt Market
Forbes Precision is not a startup pretending to be an AI company. It is a proper, old-school industrial business that manufactures cutting tools used in aerospace, defence, auto components, valves, die & mould—basically industries where mistakes are expensive and tolerances are unforgiving.
The company came into existence in 2022 but don’t let that fool you. This is a demerged precision tools business from Forbes & Company Ltd, approved by NCLT in Feb 2024 and operational from March 2024. Translation: this is an old business wearing a new PAN card.
The market, however, has treated it like a newly listed smallcap that forgot to promise a 10x story. Revenue growth is steady, margins are healthy, capital allocation is sane—but no flashy narrative. And in 2025, that’s almost a crime.
So the real question is: are we looking at a boring compounder being punished for being boring, or a cyclical industrial name
whose best days are already machined out?
3. Business Model – WTF Do They Even Do?
Imagine a factory wants to drill, mill, thread, or deburr metal with micron-level accuracy. Forbes Precision sells the tools that make that happen.
Under brands like TOTEM, BBBB, and Forbes Kendo, the company manufactures and trades:
- Internal & external threading tools (taps, dies)
- Milling tools (end mills, thread mills)
- Drilling tools (solid carbide & HSS drills)
- Deburring solutions
- Adaptors, chucks, holders—basically everything that connects machines to cutting tools
They operate the largest distribution network in India for cutting tools with 1,500+ distributors and 7 branch offices. Manufacturing happens at Waluj, Aurangabad. Exports reach 32+ countries across every continent that likes to cut metal.
Revenue mix in FY24 was clean:
- Sale of finished goods: ~98%
- Traded goods: ~1%
- Services & others: ~1%
Simple business. No financial engineering. Just engineering-engineering.
4. Financials Overview – Numbers Don’t Lie, Markets Do
Quarterly Performance (₹ Cr)
| Metric | Latest Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 64.37 | 57.41 | 63.27 | 12.1% | 1.7% |
| EBITDA | 11.73 | 13.33 | 14.58 | -12.0% | -19.6% |
| PAT | 5.59 | 7.44 | 8.30 | -24.9% | -32.7% |
| EPS (₹) | 1.08 | 1.44 | 1.61 | -25.0% | -32.9% |
Yes, margins and profits dipped. Costs rose, EBITDA softened, and PAT followed like a loyal junior engineer.
EPS Annualisation (Locked: Quarterly Results)
Q3 FY26 EPS values:
- Q1 FY26: ₹0.74
- Q2 FY26:
