Specialty Chemical Stock Zooms Over 7%; Brokerage Revises Target Price On Ashish Kacholia Stock

The share price of speciality chemical small-cap company Fineotex Chemicals showed a strong buying trend on Wednesday. The stock shot up to an intraday high of Rs 402.70 per share after opening on the BSE at Rs 376.90 a share. The stock was trading 7.08% higher at Rs 401.55 a share during the afternoon deals compared to the previous closing of Rs 375.

Following the announcement that Fineotex Chemical had successfully raised Rs 342.5 crore to support both organic and inorganic development possibilities and enhance operational excellence, the stock price saw a surge.

Fineotex Chemical got off to a strong start in FY25 as the company's net profit increased 11.95% to Rs 28.75 crore in the quarter that ended in June 2024 from Rs 25.68 crore in the quarter that ended in June 2023. Sales for the quarter ended June 2024 climbed by 7.31% to Rs 141.90 crore from Rs 132.23 crore in the corresponding quarter ending June 2023. The company's EBITDA margins were maintained on a QoQ basis, coming in at 25%, with a 100 bps YoY increase in Q1FY25. Meanwhile, its gross margins grew by 170 bps on a YoY basis, coming in at 38.5%. Following the impressive performance in Q1, KRChoksey Research has assigned a 'BUY' rating on the stock for a target price of Rs 529/share (previously 573/share).

Ashish Kacholia Stake In Fineotex Chemicals

Among the stocks owned by Ashish Kacholia's portfolio is Fineotex Chemical. Ashish Kacholia owns 31,35,568 shares of Fineotex Chemical Ltd., which represents 2.81% of the company's total paid-up capital, according to Fineotex Chemical Ltd.'s shareholding pattern for the quarter ending in June 2024 available on BSE.

Valuation of Fineotex Chemicals

As per Trendlyne report, Fineotex Chemical Ltd. has a share price target of Rs 529, a revenue growth forecast of 24.0%, and a profit growth estimate of 30.5% for FY25, based on the top 1 analyst calls. The target price represents a potential upside of 14.95% from the current price level. From its 52-week low of 281.6, Fineotex Chemical Ltd. has gone up by 41.01%. On October 26, 2023, Fineotex Chemical Ltd. reached a 52-week low. On February 19, 2024, Fineotex Chemical Ltd. reached a 52-week high.