52-week high alert & FIIs increase stake: This small-cap speciality chemicals company reports stellar quarterly & nine-month results and announces dividend!
The shares of the company have an ROE of 35.18 per cent and an ROCE of 30.43 per cent from nine months FY24.
Today, shares of Fineotex Chemical Limited gained 8.28 per cent to a fresh new 52-week high of Rs 428.90 per share from their previous closing of Rs 396.10. The shares of the company saw a spurt in volume by more than 1.50 times on BSE.
The sudden rise in the stock price was due to the company announcing Quarterly Results, nine-month results, interim dividend and likely to raise funds for business expansion. Here are the details:
According to quarterly results, the net sales increased by 26.75 per cent to Rs 138.45 crore and net profit increased by 46.49 per cent to Rs 22.47 crore in Q3FY24 compared to Q3FY23. In nine-month results, the net sales increased by 9.66 per cent to Rs 415.95 crore and net profit increased by 42.57 per cent to Rs 90.55 crore in 9MFY24 compared to 9MFY23.
The Board of Directors of the company declared an interim dividend of 60 per cent i.e., Rs 1.20 per equity share (face value Rs 2 each) aggregating to Rs 13.29 crore. The record date will be February 26, 2024 and the dividend will be paid on or before March 12, 2024.
Additionally, the Board of Directors of the company will be held on Friday, February 16, 2024, inter alia to consider the proposal for raising of funds by way of issue of one or more of instruments comprising of equity shares, convertible securities of any other description or warrants or debt securities, through private placement/preferential issue/qualified institutions placement or such other methods or combinations thereof as may be decided by the Board.
Fineotex Chemical is a leading speciality chemical producer and solution provider, founded in 1979. It has a market-leading position in the speciality chemicals industry, both domestically and internationally. The company manufactures chemicals for the entire textile value chain, including pre-treatment, dyeing, printing, and finishing processes. It has also successfully expanded into the home care, hygiene, and drilling speciality chemicals sector, which is supporting its next phase of growth.
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Fineotex manufactures over 470 products and exports to over 69 countries. It has manufacturing facilities in Mumbai and Ambernath, India and Selangor, Malaysia with a combined capacity of 1,04,000 MTPA. The newly set up facility at Ambernath with a capacity of 61,000 MTPA will cater to customers' demand for existing textile specialities and the fast-growing home care, hygiene, and drilling specialities business.
The company has a market cap of over Rs 4,500 crore and has delivered good profit growth of 31.1 per cent CAGR over the last 5 years. As of December 2023, 2 ace investors, Ashish Kacholia and Suresh Kumar Agarwal own 2.83 per cent and 1.26 per cent respectively. In December 2023, FIIs increased their stake to 0.82 per cent from 0.72 per cent in September 2023.
The shares of the company have an ROE of 35.18 per cent and an ROCE of 30.43 per cent from nine months FY24. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 208.45 per cent and a whopping 1,035 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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