Share Trading Tips

Forbes & Company (BSE Code 502865)   52 week high/low Rs 305.05/535.00 .  Forbes & Company has three main businesses viz, engineering, shipping and logistics, and business automation. For 9MFYO9, the company recorded a drastic de-growth in both its topline as well as bottomline that recorded a loss of Rs 16.78 crore as compared to the profit of Rs 6.19 crore last year. The main reason behind such a loss is the major decline in revenue from the various business segments. During the same period, the company’s revenue from contract manufacturing, business automation and other business segments recorded a decline of 91.81 per cent, 9.67 per cent and 45.56 per cent respectively.
The company is in the process of restructuring its business activities and is transferring its business automation activity to one of its subsidiary. The company is also considering a demerger with Volkart Fleming Shipping & Services (VFSSL). In fact, the company has gone through major restructuring activities carried out since 2007, when it demerged the textile business to a new entity, Gokak Textiles, that contributed more than 50 per cent of the company’s topline before the demerger. The company is currently trading at a PIBV of 2.40x. Thus, looking at the company’s deteriorating financial performance we would suggest that you should rather invest in a blue chip stock with a long-term investment horizon.