Stock in Focus: Company Enters New Oil & Gas and Water Businesses, With Strong Order Pipeline & CMD Honored with Hurun India's Most Respected Entrepreneurs Award 2025

The company has a market cap of Rs 3,140 crore with an ROE of 30 per cent and an ROCE of 39 per cent.

On Friday, shares of Fineotex Chemical Ltd (FCL) plunged 2.6 per cent to Rs 273.9 per share from its previous closing of Rs 281.15 per share. The stock’s 52-week high is Rs 458 per share and its 52-week low is Rs 270 per share.

Fineotex Chemical Limited (FCL), a leading specialty performance chemical manufacturer in India, announced its unaudited financial results for the third quarter and nine months ending December 31, 2024. While Q3 FY25 saw a slight revenue dip to Rs 130.91 crore compared to Rs 143.39 crore in the same period last year due to muted FMCG demand, the company's nine-month performance remained robust. Consolidated total income for 9M FY25 reached Rs 430.31 crore, a marginal increase over the previous year. Operating EBITDA for 9M FY25 was maintained at Rs 105.94 crore, reflecting a healthy margin of 25.62 per cent. Despite the quarterly fluctuations, FCL expressed confidence in its targets, citing India's growth trajectory and the company's strategic diversification.

FCL's expansion into new sectors like oil & gas and water treatment is progressing well, with a strong and growing order pipeline across various geographies. The company's upcoming plant, expected to be operational by Q2 FY26, will further bolster its manufacturing capabilities. Innovation remains a key focus, as evidenced by the development of 15 new products during the quarter, including sustainable solutions like AquaStrike Premium. This commitment to innovation supports both market expansion and the company's sustainability goals. The company's strong financial position, with over Rs 300 crore earmarked for inorganic growth opportunities, positions it well to capitalize on strategic acquisitions.

The Board of Directors has approved an interim dividend of Rs 0.40 per equity share, aggregating to Rs 4.58 crore, demonstrating confidence in the company's financial health. FCL also highlighted the recent upgrade of its credit ratings by ICRA to A+ (Positive) for long-term and short-term instruments, further validating its financial strength and stability. The company remains committed to creating long-term value and is optimistic about its future prospects, particularly with the continued growth of its new business segments and the upcoming plant expansion.

Additionally, Mr Surendrakumar Deviprasad Tibrewala, Chairman and Managing Director of Fineotex Chemical Limited, received the prestigious Hurun India's Most Respected Entrepreneurs Award 2025 for Excellence in Textile Chemical Solutions. The award, presented at a ceremony in Mumbai, recognizes Mr. Tibrewala's visionary leadership and contributions to the Indian chemical and textile sectors. This accolade highlights Fineotex Chemical Limited's pioneering work in developing innovative and sustainable chemical solutions for the global textile industry, driven by a commitment to research, development, and environmental sustainability.

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.

An ace investor, Ashish Kacholia holds 31,35,568 shares or 2.74 per cent stake in the company as of December 2024. The company has a market cap of Rs 3,140 crore with an ROE of 30 per cent and an ROCE of 39 per cent. The stock gave multibagger returns of over 900 per cent returns in 5 years.

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