Stock Watch     

Published: August 15, 2026
Updated: August 15, 2026

Forbes Precision Tools and Machine Parts

Tooling solutions for A-Z of industry

Renowned for ‘TOTEM’, a 58-year-old brand comprising carbide and steel cutting tools, the company is gearing to grab the growth opportunities ahead. Originally Forbes & Company back in 1968, it is now the demerged Shapoorji Pallonji group company Forbes Precision Tools and Machine Parts (FPTL), and it was listed on BSE two years ago.

Spread over 16 acres with a built-up area of 4,468.31 sq m, its state-of-the-art plant is located at Sambhajinagar (Aurangabad) in Maharashtra. Over the last three years, the company has replaced some of its old machines with automated and advanced ones from Germany, Switzerland and Australia. Excluding land cost, the fixed assets gross block is Rs 260 crore and net block (WDV) is Rs 100 crore at the end of FY 26.

FPTL manufactures carbide and high-speed steel (HSS) round cutting tools under the brand name ‘TOTEM’. It offers complete tooling solutions in internal and external threading, drilling, milling, deburring and reaming. A wide spectrum of industry sectors is served, including automotive, oil & gas, aerospace, defence, valves & pumps, moulds & dies, heavy engineering, and electricals & electronics.

QUALITY REJIG

The product range includes HSS hand and machine taps, carbide thread mills and taps, solid carbide end mills and drills, tungsten carbide rotary burrs, and HSS drills. The company is the largest manufacturer of spring lock washers in India, serving major auto and transmission segments. In FY 26, investments have been made in capacity augmentation in HSS drills and spring washers. Some refurbishments and major repairs have also been done to equipment in high-speed steel, packing and quality & measurement with an aim to improve the quality of products across the portfolio. Incremental growth is anticipated from its flagship high speed taps business because, in addition to regular customers, the company has added new customers from export markets.

During FY 26, on net revenue of Rs 251 crore (PY Rs 233 crore), the company has achieved PBT and PAT of Rs 39.50 crore and Rs 28.77 crore vis-à-vis Rs 40.88 crore and Rs 28.75 crore respectively in the previous financial year. On a higher equity capital of Rs 51.59 crore (face value Rs 10), EPS works out to Rs 5.58, almost at the same level of FY 25.

It is worth pointing out that in Q4 FY 26, its EBITDA margin at 27.69% has shown good improvement. With Rs 11.06 crore net profit, this particular quarter alone has contributed 38.44% of the full year PAT of Rs 28.77 crore. As the gross block and revenue for the year are almost running parallel at around Rs 250 crore, it is expected that the management will prioritise greater capacity utilisation for the purpose of higher revenue and profits.

SCALING UP

Commenting on the FY 26 performance, Mahesh Tahilyani, Managing Director, said, “As we completed our second full year as an integrated precision round cutting tool manufacturer, our focus remained on consolidating investments in manufacturing capacity, quality enhancement and process improvements, which have strengthened our operational capabilities, as well as enhancing market responsiveness and customer engagement.”

He added, “We continue to align with opportunities across aerospace, defence, railways and electronics, supported by the ‘Make in India’ initiative. Our channel expansion and targeted international outreach position us well for growth. Participation in key exhibitions such as EMO Hannover and Indexpo have further strengthened our global market engagement. In fact, we have regained some business in Far East and GCC countries, restoring our presence in these markets. Likewise, our actions to increase capacities in drill segments have paid off and we are seeing substantial growth in these segments. The success seen in India and abroad has given us confidence in our ability to scale up the business.”

The business outlook for the cutting tools industry looks quite promising, primarily for two reasons – a paradigm shift in the government’s policy to boost domestic manufacturing in general, and a special emphasis on ‘Make in India’ and ‘Atmanirbhar Bharat’, especially in sectors like defence, aerospace, space, electronics, railway, power, new energies, semiconductors and engineering. Moreover, FPTL possesses the capabilities and production capacity to encash the opportunities ahead. Interestingly, the boom in user industries are likely to be of a longer cycle, and it can be safely concluded that the company will continue performing better, supported by its established 58-year-old brand equity. Very likely, its performance will witness steady growth QoQ henceforth.

E.V. HEADWIND

On the flip side, the government’s push for the electric vehicle segment, combined with customer preferences, does pose the likelihood of a slowdown in demand for a company like FPTL which has remained more dependent on the automotive sector. However, the company has kept abreast of new developments and is ready to move quickly by focusing on upcoming sectors, because a big boost to local manufacturing will simultaneously witness an increase in demand for cutting tools from new and replacement markets. Further, its strong presence through seven offices, 1,500 distributors and exports to 32 countries augurs well for its seamless growth.

Interestingly, Shapoorji Pallonji – the promoter group – holds 73.85% equity in the company, followed by foreign investors 10.94%, domestic institutional investors 0.33%, the public 9.98% and others 4.90%. A 50% dividend has been declared and RONW is maintained at 17%. The total outstanding borrowing is Rs 14.87 crore (PY Rs 19.68 crore). However, after considering deposits and investments in mutual funds, the company has maintained a net debt-free status at year-end. Likewise, the operating margin at 22.58% with a shortening debtor cycle to 46 days are also favourable indicators.

FAIR VALUE

Currently, the stock is being quoted at Rs 123, with a yearly high-low of Rs 216-Rs 103 and market capitalisation of Rs 633 crore. Considering the EPS of Rs 5.58 for FY 26, it gives a PE of 22.04. Even though the company is not so popular in the stock market, it has a bright future under a reputed management. We would therefore advise buying its shares in small quantities at current levels and adding some more at declines, keeping a 12-18 month horizon for decent appreciation.

• Net Revenue: Rs 251.01 crore (FY26) vs Rs 232.66 crore (FY25)
• Operating Profit: Rs 15.51 crore (FY26) vs Rs 13.50 crore (FY25)
• PBT: Rs 39.50 crore (FY26) vs Rs 40.88 crore (FY25)
• PAT: Rs 28.77 crore (FY26) vs Rs 28.75 crore (FY25)
• EPS: Rs 5.58 (FY26), almost at par with FY25
• Dividend: 50% for FY26
• OPM: 22.58% (FY26) vs 23.86% (FY25)