Promoter bought 13,00,600 shares and FIIs bought 15,58,000 shares via preferential issue; Announces business expansion & scrip hit back-to-back 52-week 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.
Today, the stock market was trading in green with Sensex and Nifty-50 indices gaining over 0.10 per cent each. Along with the stock market in green, shares of Fineotex Chemical Limited gained 4.51 per cent and made an all-time high and 52-week high of Rs 458 per share from their previous closing of Rs 438.25.
Fineotex Chemical Ltd informed that the Board of Directors of the company had approved fundraising and allotted a total of 81,02,600 shares via preferential issue to promoter and various non-promoters of the company including Foreign Institutional Investors (FIIs) aggregating to Rs 2,80,34,99,600 at Rs 346 per share.
In the fundraising, the promoter of the company Sanjay Tibrewala bought 13,00,600 shares and FIIs including Coeus Global Opportunities Fund, Aries Opportunities Fund Limited and Elara India Opportunities Fund collectively bought 15,58,000 shares.
Additionally, an ace investor, Ashish Kacholia with a large portfolio of stocks valued at over Rs 3,00 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. Furthermore, another ace investor, Suresh Kumar Agarwal owns a 1.26 per cent stake in the company.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
Fineotex Chemical, a leading speciality chemical producer since 1979, is expanding its production capacity for textiles and hygiene industries with a new 7-acre factory in Additional Ambernath. This Rs 35 crore investment, funded by the company's profits, will solidify its market-leading position by meeting growing demand, adapting to market changes, and strengthening its commitment to stakeholder value, all while covering the entire textile value chain with its speciality chemicals.
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.
The company has a market cap of over Rs 5,000 crore and has delivered good profit growth of 31.1 per cent CAGR over the last 5 years. The company's shares 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.
For more such updates on the go, Click here to join our WhatsApp Channel