Ashish Kacholia Portfolio: Specialty Chemical Stock In Focus; Key Reasons Here

Fineotex Chemical Ltd (FCL), which is the leading manufacturer engaged in specialty chemicals; for the essence today, the stock price grew as much as 3.80% hitting an intraday high of Rs 438.60 over close, which is a level attained Rs 380.65. The stock is on this astonishing turn registering a 56% rise on the year where the 52-weeks-low was Rs 281.05. Over the last five years five thousand literally reincorporated, Fineotex has returned a multibagger return of 1600%, and handsome returns over the last decade stood at over 4050%.

FCL announced its Q1FY24 results in August with total revenue of Rs 141.9 crore and the revenue growth YoY was 7.3 which growth mostly came from the business expansion with the core customers of its respective business units. For the quarter under review, Fineotex's EBITDA stood at Rs 35.3 crores for which the YoY growth was 11.8 per cent which was coupled with a satisfactory EBITDA margin of 24.8 per cent. PAT also increased appreciably and touched Rs 29.2 crores which gives growth of 11.7 per cent compared to last year and results PAT margin of 20.6%

Fineotex looks to be on the correct path, not just with the achievement of its business on a rolling basis but also fund sourcing efforts. The company has raised Rs 342.5 crore on the preferential issue of equity shares and convertible warrants. This fundraising exercise was conducted in two tranches. In the First Tranche, Fineotex made an issue of 9,70,000 equity shares at Rs 346 per share and raised Rs 33.56 crore. Additionally, 26,26,600 numbered convertible warrants at a price of Rs 346 per warrant were also issued at a total of Rs 90.88 crores. Fineotex is quoting an advance payment of Rs 22.72 crore which is to be 25 % of the total size of Rs 90.9 crore warrant issue. Every warrant is a convertible bearing a range value in payments of Rs 259.5 to equate to one equity share of the company, the payment is to be made within 18 months from May 2024.

It can be clearly seen that the investors have turned out to be quite keen towards the company. As of 31 July 2024, known investor Ashish Kacholia owns 31,35,568 shares of Fineotex constituting a 2.74% stake in the company. Foreign Institutional Investors (FIIs) also did not step back from increasing their hold over the company, increasing it to 3.14% from 0.92% in June by acquiring 25,65,049 shares in July 2024.

Fineotex Chemical Ltd founded in 1979 has made a mark in the other specialty chemicals industry. Most of its business is based in the textile industry but provides sterilization and disinfectants as well as detergents. Biotex Malaysia, as a subsidiary of the company, conducts R&D and diversifies its portfolios into over 470 items. The company also serves more than 70 countries through a network of over 100 dealers most of whom include clients from leaders in the industry such as Nahar Group and Raymond.