The small-cap company’s share price rose 3.5 percent to an intraday high of Rs 374 per share on Monday, from a previous close of Rs 361.3 per share, after the company acquired land and incorporated its subsidiary.
According to the filling of Fineotex Chemical Ltd, Fineotex Specialties Private Limited (FSPL), a subsidiary of the company, has acquired 7 acres of land in Thane for Rs. 35 crores to expand its operations.
The company has also incorporated a new subsidiary, Finoclean Specialities Private Limited, to manufacture and trade specialty polymers and chemicals for industries like health, hygiene, detergents, etc.
According to Fineotex Chemical Ltd’s financials, net revenue increased 8.2 percent year on year, from Rs 134 crore in Q2FY23 to Rs 145 crore in Q2FY24. Their revenue increased 9.8 percent sequentially from Rs 132 crore in the first quarter of FY24 to the current levels.
In addition, the company’s net profit increased by 47 percent year on year, rising from Rs 21 crore in Q2FY23 to Rs 31 crore in Q2FY24. Their profit increased by 19.2 percent sequentially from Rs 26 crore in Q1FY24 to current levels.
Fineotex Chemical Limited is a small-cap stock with a market capitalization of Rs 4,100 Crores, the share price of the company rose by 45 percent last year.
The company has a low price-to-earnings ratio of 38, a low debt-to-equity ratio of 0.02, a 29 percent return on equity ratio, a 37 percent return on capital employed, and a 17 percent net profit margin.
Fineotex Chemical Ltd promoters own 65 percent of the company, while foreign institutional investors own 1 percent, domestic institutional investors own 4 percent, and the general public owns 30 percent.
Fineotex Chemicals Ltd, founded in 1979, is a manufacturer of auxiliaries and specialty chemicals for the textile, construction, water treatment, fertilizer, leather, and paint industries.
Written by Sriram KV
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