Ashish Kacholia's portfolio high ROE & high ROCE multibagger chemicals stock, FCL gains over 5 per cent today; FIIs to invest in upcoming fundraising – details inside!

The stock gave multibagger returns of 800 per cent returns in 5 years and a whopping 4,700 per cent in a decade. 

Today, shares of Fineotex Chemical Ltd (FCL) gained 5.45 per cent to an intraday high of Rs 342.65 per share from an intraday low of Rs 324.95. An ace investor, Ashish Kacholia has 31,35,568 shares or 2.83 per cent stake in the company. This company is financially strong with a market cap exceeding Rs 3,700 crore. The stock gave multibagger returns of 800 per cent returns in 5 years and a whopping 4,700 per cent in a decade. 

Fineotex Chemical Limited (FCL) is seeking to raise funds through a dual offering of equity shares and convertible warrants. The company will issue up to 28,15,049 new equity shares with a face value of Rs 2 each at a premium of Rs 385.40 per share, totalling Rs 387.40 per share. This equity issuance is expected to generate a maximum of Rs 109,05,49,983 for the company. Additionally, Fineotex Chemical will offer up to 28,15,049 convertible warrants, also priced at Rs 387.40 each. These warrants can be converted into one equity share with a face value of Rs 2 each. This convertible warrant issuance has the potential to raise another Rs 109,05,49,983 for the company. Press releases on the stock exchanges mentioned Intuitive Alpha Investment Fund PCC -Cell 1 and Forbes EMF & Coeus Global Opportunities Fund as potential investors.

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 consolidated business delivered positive results in Q4 and FY 2023-2024. Revenue from operations grew steadily, reaching Rs 15,301.72 lakh in Q4, reflecting an 11.13 per cent increase year-over-year compared to Rs 13,768.95 lakh. This positive trend continued throughout the fiscal year, with total revenue reaching Rs 56,897.04 lakh, a 10.05 per cent increase from Rs 51,699.57 lakh the prior year. Profitability also showed strong improvement. Profit after tax (PAT) climbed to Rs 3,047.53 lakh in Q4, representing a 17.21 per cent rise from Rs 2,599.95 lakh. The PAT growth for the entire fiscal year was even more impressive, reaching Rs 12,102.49 lakh, a significant 35.14 per cent increase compared to Rs 8,955.48 lakh the previous year. Adding to the positive performance, the consolidated business achieved a substantial 25.51 per cent year-over-year volume growth for the fiscal year.

The company's board recommended a final dividend of Rs 0.40 per share (20 per cent of face value) for fiscal year 2023-24, subject to shareholder approval at the annual general meeting. This brings the total dividend for the year to Rs 1.60 per share (80 per cent of face value) after considering the Rs 1.20 interim dividend already paid. This translates to a total payout of Rs 17,75,92,099.60. Additionally, the company achieved a strong return on capital employed (ROCE) of approximately 34.4 per cent and a return on equity (ROE) of approximately 29.9 per cent for the same fiscal year.

Disclaimer: The article is for informational purposes only and not investment advice