The Piotroski score is usually defined as a discrete score between ‘zero’ and ‘nine’ that mainly reflects nine criteria’s for the purpose of determining the strength of a firm’s financial position. This score is used by people to determine stocks with the best value, with nine being the best and zero being the worst.
Listed below is one such stock with high Piotroski score of 9 currently trading at a discount of more than 25 percent from its 52-week high levels.
Fineotex Chemical Limited
Shares of Fineotex Chemical Limited are currently trading at Rs 303, gaining around 2.3 percent as compared to the previous closing price of Rs 296.60. The scrip has jumped around 24 percent in the last one-month period ranging from Rs 245.10 to the current levels.
The company touched its 52-week high mark of Rs 409.45 on 13th September 2022. The current stock prices portray a discount of 26 percent as compared to the high levels.
Fineotex Chemical Limited is a company based in India that is engaged in manufacturing Textile chemicals, specialty chemicals, and auxiliaries. Some of the products in its portfolio include Barite, Magnesium Chloride, Hematite, Calcium Chloride, etc.
Geographically, the company sells its products within India and also exports the same. It derives a majority of its revenue from domestic operations within the country.
Having a quick glance at the YoY financials reported by the company, the operating revenues increased from Rs 368 crores during FY21-22 to Rs 517 crores in FY22-23. Moreover, the profit after tax (PAT), keeping the timeframe the same, took a shift from Rs 57 crores to Rs 90 crores.
Coming onto the profitability ratios of the company, the operating as well as net profit margins improved in the recent financial years with the former moving up from 20.15 percent in FY21-22 to 22.36 percent in FY22-23 and the latter, during the same period, rising from 15.44 percent to 17.32 percent.
Equipping itself with the interest obligations, the company’s already-healthy interest coverage ratio increased from 83.11 times during FY21-22 to 146.11 times in FY22-23.
As per the latest shareholding data available for the March 2023 quarter, Promoters of the company hold a 65.03 percent stake, and Foreign Institutional Investors hold a 0.71 percent stake in the company.
Written by Amit Madnani
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