Ashish Kacholia gains Rs 13,34,18,418 in just 1 day from this multibagger chemicals stock; Company announced business expansion & scrip hit all-time high!
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 208.45 per cent and a whopping 1,200 per cent in 5 years.
The stock market was surging with Sensex and Nifty-50 indices gaining over 0.6 per cent. Along with the stock market in green, shares of Fineotex Chemical Limited gained 10.44 per cent and made an all-time high and 52-week high of Rs 449.95 per share from their previous closing of Rs 407.40. The shares of the company saw a spurt in volume by more than 3 times on BSE.
An ace investor, Ashish Kacholia with a large portfolio of stocks valued at over Rs 2,900 crore (diversified in 46 stocks), owns 31,35,568 shares of Fineotex Chemicals Ltd as of December 2023. This represents a 2.83 per cent ownership stake in the company.
Today, the stock gained Rs 42.55 per share or 10.44 per cent from its previous closing. Hence, his portfolio gained by 13,34,18,418 in just 1 day (31,35,568 shares x Rs 42.55 per share). Additionally, another ace investor, Suresh Kumar Agarwal owns a 1.26 per cent stake in the company. Furthermore, FIIs bought 1,02,003 shares, increasing their stake to 0.82 per cent in December 2023 from 0.72 per cent in September 2023.
According to Quarterly Results, the net sales increased by 26.8 per cent to Rs 138.5 crore and net profit increased by 46.5 per cent to Rs 3.29 crore in Q3FY24 compared to Q3FY23. In nine-month results, the net sales increased by 9.7 per cent to Rs 416 crore and net profit increased by 42.5 per cent to Rs 90.5 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.
To expand the production of the company’s speciality chemicals for industries like textiles and hygiene, we invested Rs 35 crore in a new 7-acre factory in Additional Ambernath, funded by the company’s profits. This flexible facility will help us meet growing demand and adapt to market changes, furthering financial strength and commitment to stakeholder value.
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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.
The company has a market cap of over Rs 4,800 crore and has delivered good profit growth of 31.1 per cent CAGR over the last 5 years. 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 1,200 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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