This chemical stock hits fresh all-time high on robust Q1; surges 3x in one year

Shares of Fineotex Chemicals rallied over 9% in intraday trade to hit a fresh all-time high on Friday, in an otherwise subdued broader market. The smallcap stock has risen more than 30% in the last nine sessions, from ₹210.8 on July 29, to ₹273.55 in intraday today, after the Mumbai-headquartered company reported robust earnings in the first quarter ended June 30, 2022. In the last one year, the multibagger stock has delivered nearly three times returns to its shareholders, rising from its 52-week low of ₹93.30 touched on August 28. 2021.

On Friday, Fineotex Chemicals share price opened higher, snapping two sessions losing streak, at ₹257 on the BSE, up 2.57% against the previous closing price of ₹250.55. During the session so far, the stock soared as much as 9.18% to acclaim a fresh record high of ₹273.55, driven by spurt in volume trade. As many as 1.28 lakh shares changed hands over the counter in the first half of the day’s trade, as compared to the two-week average volume of 1.77 lakh scrips. The market capitalisation climbed to ₹2,894.96 crore. In comparison, the BSE benchmark Sensex was trading 81 points higher at 59,414 levels, with 17 out of 30 shares floating in the red zone.

Fineotex shares trades higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, with the stock price gaining 8% in the last one week, 35% in a month, and 90% in the calendar year 2022 (year-to-date basis). It has risen 850% in the last three years and 11,780% over the 10 year period.

Earlier this week, ace investor Ashish Kacholia raised his stake in the company by acquiring additional 5.5 lakh equity shares, or 0.5% stake, through open market transactions. With this, Kacholia’s shareholding in the company rose to 2.43%, from 1.94% earlier.

For the April-June quarter of 2022, the specialty chemicals producer, with a focus on textiles chemicals, reported 110% year-on-year (YoY) growth in its consolidated profit after tax (PAT) at ₹20.3 crore, as compared to ₹9.69 crore in the corresponding period last year. The revenue from operations jumped 114.6% to ₹135.7 crore in Q1 FY23, versus ₹63.3 crore in the same period last fiscal. Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew 167% YoY at ₹26.20 crore, while margin increased 381 basis points YoY to 19.3%.

During the quarter under review, the company entered into a strategic collaboration with Eurodye-CTC, Belgium, to commercialise specialty chemicals for the Indian market. It also inked a deal with HealthGuard, Australia, to provide durable metal-free sustainable chemistry solutions that are anti-microbial and anti-viral. The company also announced that its new manufacturing plant at Ambernath (Mumbai) will gradually provide an additional 40,000 metric tonnes of production capacity.