Up by more than 33 per cent in one month, this Shapoorji Pallonji Company is on the verge of a multi-year breakout

The share price of Forbes & Company Ltd jumped higher by ~6 per cent on Thursday to close at fresh 52-week high. The stocks close at Rs 4116.50 per share thus making a multi-year high in the last trading session of the previous week. 

The shares of Forbes & Company Ltd gave a price volume breakout on Thursday even as the stock is seen trading above the key short and long-term moving averages, indicating positive momentum in stock price. 

The shares of Forbes & Company have jumped higher by more than 33 per cent in one month alone while on YTD basis the stock is up by over 158 per cent. In one year, the stock is up by 189 per cent. The stock is steadily gaining month on month basis with rising volume. 

Forbes & Company Ltd has heavy debts and the promoters pledging stand at more than 98.25 per cent. The company is reflecting negative book value presently. 

The stock is in focus as the private equity group Advent International has emerged as a frontrunner to acquire Eureka Forbes for Rs 4,500- 5,000 crore. The formal announcement is expected soon. The deal is expected to help the highly leveraged Shapoorji Pallonji Group, pare debt. The Eureka Forbes is a loss making subsidiary of Forbes & Co. Eureka Forbes will be demerged and sold to Advent after approval by the National Company law Tribunal (NCLT). 

Forbes & Company Ltd., the erstwhile Forbes Gokak Ltd., based in Mumbai, is the oldest registered company in India, and one of the oldest in the world. It was established by John Forbes of Aberdeenshire, Scotland in 1767. Over the past few years, the management of the company moved from the Forbes family to the Campbells, to the Tata Group, and finally to the Shapoorji Pallonji Group, leaders in infrastructure, construction and real estate businesses. Forbes & Company Limited is involved in three main areas: Engineering, Shipping & logistics, Business automation.