Ashish Kacholia's portfolio high ROE & high ROCE multibagger chemicals stock; the Board allocates 28,15,049 shares to FIIs & non-promoter; details inside!

The stock gave multibagger returns of 1,000 per cent returns in 5 years and a whopping 5,500 per cent in a decade. 

Today, shares of Fineotex Chemical Ltd (FCL) gained 1.68 per cent to an intraday high of Rs 393 per share from its previous closing of Rs 386.50. An ace investor, Ashish Kacholia has 31,35,568 shares or 2.81 per cent stake in the company as of May 2024. This company is financially strong with a market cap exceeding Rs 4,200 crore. The stock gave multibagger returns of 1,000 per cent returns in 5 years and a whopping 5,500 per cent in a decade. 

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.

The Board of Directors of the company allocated 28,15,049 shares of 3 FIIs (Intuitive Alpha Investment Fund PCC -Cell 1 was allocated 5,00,000 shares or 0.43 per cent, Expertpro Realty Private Limited was allocated 250,000 shares or 0.21 per cent and Forbes EMF was allocated 20,65,049 or 1.76 per cent).

Also Read: After Rs 7,000 crore orders from Adani Group, this heavy electrical equipment company likely to bags another huge order worth Rs 13,300 crore from Damodar Valley Corporation

The consolidated business results for Q4 and FY 2023-2024 paint a positive picture. Revenue from operations grew steadily throughout the year, reaching Rs 15,3.02 crore in Q4, reflecting an 11.13 per cent year-over-year increase. This positive trend continued for the entire fiscal year, with total revenue reaching Rs 568.97 crore, a 10.05 per cent increase from the previous year. Profitability also showed strong improvement, with profit after tax (PAT) climbing to Rs 30.48 crore in Q4 (a 17.21 per cent rise) and reaching Rs 121.02 crore for the entire fiscal year (a significant 35.14 per cent increase compared to the prior year). Enhancing the positive performance, the consolidated business achieved a substantial 25.51 per cent year-over-year volume growth for the fiscal year.

Fineotex Chemical Limited (FCL) is looking to raise Rs 218.11 crore by issuing a combination of new equity shares and convertible warrants. The company will sell up to 28.15 million new equity shares (face value Rs 2) at a premium of Rs 385.40 per share, totalling Rs 387.40 each, potentially raising Rs 109.05 crore. Additionally, FCL will offer a similar number of convertible warrants priced at Rs 387.40 each. These warrants can be converted into regular shares, potentially bringing in another Rs 109.05 crore. According to stock exchange filings, investors like Intuitive Alpha Investment Fund PCC -Cell 1 and Forbes EMF & Coeus Global Opportunities Fund might be participating in this dual offering.

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. Investors should keep an eye on this Small-Cap chemical stock.

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