Shares of Fineotex Chemical Ltd. were in the green after seasoned investor Ashish Kacholia increased his stake in the company. Its shares climbed 2.78% on Monday to reach an intraday high of ₹ 249.65 apiece. At 02:57 PM, its shares were trading at ₹ 246.40 apiece, up 1.44%.
Fineotex Chemical is engaged in the business of manufacturing auxiliaries and specialty chemicals. These are used in industries like textile, construction, water treatment, fertilizer, leather, paint and more.
According to the shareholding pattern of the company for the January to March quarter, Ashish Kacholia has increased his stake in the company by 0.2%. Earlier he had a 2.6% stake in it, compared to a 2.8% stake currently. The ace investor holds 31,24,072 shares in the company and his holdings are worth ₹ 76.97 crores.
The ace investor has held a stake in the company since the June quarter of 2022. The company’s share price reached an all-time high of ₹ 409.00 apiece in September 2022. From that point, its share price has fallen by 39.76%. However, Ashish Kacholia has been increasing his stake in the company. He held a 1.8% stake in the company in the March quarter last year, indicating that his shareholding in the company has increased by one percent in a year’s time.
Fineotex Chemical is a small-cap stock with a market capitalization of ₹ 2,690 crores. It has a good return on equity of 23.40% and an ideal debt to equity ratio of 0.00. Its shares were trading at a price-to-earnings ratio of 34.01, which is more than twice the industry P/E of 14.77, indicating that the stock might be overvalued as compared to its peers, or investors are willing to pay a higher amount for the company’s future earnings.
The company’s shares have given multibagger returns of 288% in the past two years. If an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 3.88 lakhs today!
Written by Simran Bafna
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