Synopsis:
Fineotex Chemical jumped sharply after the company announced that its board meeting scheduled on September 27 will evaluate important resolutions such as stock split, bonus shares, an interim dividend, and an increase in authorized share capital.
The shares of this leading manufacturer of auxiliaries and specialty chemicals for textiles, construction, water treatment, fertilizer, leather, and paint industries are in focus after it announced a key proposal for its shareholders.
With a market capitalization of Rs 3,076 crore, the shares of Fineotex Chemical Ltd made a day’s high of Rs 271 per share, up 17 percent from its previous day’s closing price of Rs 232.40 per share.
Over the past five years, the stock has delivered a robust return of 734 percent, outperforming NIFTY 50’s return of only 127 percent.As of June 2025, Ashish Kacholia holds a 2.74 percent stake in the company.
About the Announcement
Fineotex Chemical, through a stock exchange filing, announced that its Board of Directors will hold a meeting on Saturday, September 27, 2025, to make some important decisions.
In the meeting, the company will look into the possibility of a share split and bonus shares with respect to its equity shares. Additionally, the company also announced that it will consider the announcement of an interim dividend during its meeting. As it stands, the face value for each share is Rs 2, and in case of approval of the split, the number of shares will go up, and the face value per share will be reduced.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 137 crore, down by 4 percent from Rs 142 crore in the same quarter last year. However, on a sequential basis, revenue grew by 14 percent from Rs 120 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit decline of 14 percent to Rs 25 crore in Q1 FY26 as compared to Rs 29 crore in Q1 FY25. However, on a QoQ basis, it recorded a growth of 25 percent from Rs 20 crore.
The company has delivered a ROE and ROCE of 18.37 percent and 23.76 percent respectively, and is currently trading at a low P/E of 25.51x as compared to its industry average of 34.55x.
Fineotex Chemical Limited is a diversified chemicals company that deals in a variety of chemicals for end-use and various industries as its customers. It deals in textile chemicals used in the pre-treatment, dyeing, printing, and finishing of fabrics alongside enzymes.
Besides that, the company also manufactures water treatment chemicals, oilfield chemicals such as drilling and cementing fluids, and cleaning and hygiene products like disinfectants, housekeeping and kitchen care products, personal care, and laundry solutions.
Fineotex is the supplier of products to numerous industrial sectors such as textiles, home care, hygiene, mining, water treatment, leather, construction, paint, agrochemicals, and adhesives. In addition to catering to customers in India, the firm also exports its products to foreign markets.
Written by Satayjeet Mukherjee
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