Ashish Kacholia’s portfolio gains Rs 9,40,67,040 in just 1 day: High ROE & high ROCE multibagger stock from chemical sector; Surges 8 per cent with 4 times spurt
The stock is up by 44 per cent from its 52-week low of Rs 281.05 per share; gave multibagger returns of 1,375 per cent returns in 5 years and a whopping 2,750 per cent in a decade.
Today, shares of Fineotex Chemical Ltd (FCL) gained Rs 30 per share or 8 per cent to an intraday high of Rs 405 per share from its previous closing of Rs 375. The shares of the company saw a spurt in volume by more than 4 times on BSE.
Fineotex Chemical Limited has successfully raised a significant amount of capital through a preferential allotment of equity shares and convertible warrants. The company secured a total of Rs 342.5 crores in two phases. In Phase I, they allotted equity shares and warrants for Rs 346 per share, receiving an upfront payment of 25% of the warrant issue size. In Phase II, the allotment price was increased to Rs 387.40 per share, with similar warrant terms. The funds raised will be used to strengthen the company's financial position and support its growth initiatives.
An ace investor, Ashish Kacholia holds 31,35,568 shares or 2.74 per cent stake in the company as of July 2024. Therefore; 31,35,568 shares x Rs 30 per share = Rs 9,40,67,040 in just 1 day.
Fineotex Chemical Ltd, founded in 1979, is a leading manufacturer of speciality chemicals for various industries. Their core business is textile chemicals, with a focus on research and development through their subsidiary Biotex Malaysia. They also offer cleaning and hygiene products like sanitisers and detergents. Fineotex boasts over 470 product categories, including chemicals for every stage of textile production, oil and water-based drilling fluids, and home care disinfectants. With a presence in over 70 countries and a network of over 100 dealers, they serve major clients like Nahar Group and Raymond in the textile industry.
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The company boasts a robust financial position with a market capitalization exceeding Rs 4,400 crore, coupled with a significant debt reduction. Over the past five years, the company has consistently demonstrated impressive profit growth, achieving a remarkable CAGR of 39.8 per cent. This positive trajectory is further evidenced by the strong financial performance exhibited in both the Quarterly Results (Q1FY25) and the annual results (FY24).
Notably, the company's ROCE reached 39 per cent and the ROE stood at 30 per cent for the same fiscal year, highlighting its efficient capital utilization and profitability. The stock is up by 44 per cent from its 52-week low of Rs 281.05 per share; gave multibagger returns of 1,375 per cent returns in 5 years and a whopping 2,750 per cent in a decade.Investors should keep an eye on this small-cap chemical stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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