This small-cap stock engaged in the business of manufacturing auxiliaries and specialty chemicals for various industries like construction, textiles, water treatment, paint, and fertilizer industries. This stock has delivered 1,500 percent multi-bagger returns to its shareholders in just 5 years.
Stock Performance
With a market capitalization of Rs. 2,632.36 crores, the shares of Fineotex Chemical Ltd were trading at Rs. 229.75 per equity share, down 3 percent from its previous close price of Rs. 238.75. On March 27, 2020, the shares were trading at Rs. 15, marking a gain of approximately 1,500 percent compared to the previous close.
On March 27, 2020, the shares were trading at Rs. 15, marking a gain of around 1,500 percent over the past 5 years. For illustration, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to ~Rs. 16 lakhs.
Company Overview
Fineotex Chemical Limited is involved in manufacturing specialty chemicals catering to the textile, paint, water treatment, fertilizer, leather, and construction industries. The company focuses on eco-friendly and sustainable product innovation.
Diversified Product Portfolio
Fineotex has launched 30 new products in the current quarter. The firm manufactures textile specialty chemicals, FMCG cleaning chemicals (floor cleaners, sanitizers, dishwashers), oil & gas chemicals (demulsifiers, corrosion inhibitors, biocides), and water treatment polymers for scale prevention and improving efficiency.
New Launches
Recently, the company introduced AquaStrike Premium, an advanced biotechnology-based mosquito control solution. This non-toxic and eco-friendly solution effectively disrupts the mosquito life cycle and also helps in water preservation. Through this innovative method, AquaStrike Premium presents a huge market opportunity for the global chemical industry.
Capacity Expansion
A new manufacturing plant is expected to be operational by Q2 FY26, enhancing production efficiency and aiding growing demand. The company is implementing renewable energy solutions, such as a 100-kilowatt solar plant at Ambernath, and optimizing processes for zero discharge of hazardous chemicals.
Future Outlook
Fineotex is experiencing strong growth in oil & gas and water treatment businesses, with a strong order pipeline expanding geographically. The oil and gas industry is also witnessing greater drilling and exploration, increasing demand for chemicals such as corrosion inhibitors, cementing fluids, and stimulation chemicals.
Further, the company has already allocated almost Rs 300 crores for the inorganic acquisition, with a focus on EPS accretive deals.
Financial Performance
When looking at the financial statements, the company has reported a 9 percent decline in revenue from Rs 138 crore in Q3 FY24 to Rs 126 crore in Q3 FY25. This was accompanied by a 15 percent decrease in net profits from Rs 33 crore to Rs 28 crore during the same period.
Written by Shwetha Sairam
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