When a seasoned investor like Ashish Kacholia holds positions in companies trading below industry PE multiples, it often signals potential value opportunities. These situations merit investor attention as they could indicate either market inefficiency or overlooked growth prospects. For value investors, such discrepancies between valuation and industry standards can present compelling entry points.
Share Price Movement
The share price of Fineotex Chemical Limited fell by 2.61 percent to Rs. 341.71 per share on Friday, an increase from its previous close of Rs. 350.85 per share. The market capitalisation now stands at approximately Rs. 3,915 crore as of January 01, 2025.
What’s Driving the Exceptional Share Price Surge?
Fineotex’s has been maintaining a high ROCE of 39% and ROE of 30%. It raised Rs. 342.5 crores for expansion, aiming to increase production capacity by 40% by FY27. With the global textile market recovery and diversification into the health sector, now 55% of its revenue, Fineotex experiences strong growth. The company has given a return of 1,095% in the last five years, reflecting strong investor interest and favourable market conditions.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Fineotex Chemical’s consolidated revenue from operations has increased by 0.69 percent YOY from Rs. 145 crore in Q2 FY24 to Rs. 146 crore in Q2 FY25 and increased by 2.81 percent QoQ from Rs. 142 crore in Q4 FY24.
The company’s consolidated net profit has increased by 3.22 percent, from Rs. 31 crore in Q2 FY24 to Rs. 32 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 10.34 percent QoQ from Rs. 29 crore.
The average price-to-earnings (P/E) ratio in the chemicals industry is 33.51, which is higher than Fineotex Chemicals current P/E ratio of 30.6.
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Market Outlook
India’s speciality chemicals sector is thriving due to cost-efficient manufacturing, advanced engineering, and supportive policies like PLI schemes. Global focus on diversifying supply chains bolsters India’s appeal.
Fineotex Chemical Limited exemplifies this growth, expanding its portfolio in textiles and hygiene, supported by strong R&D and global partnerships. With a footprint in 70+ countries and eco-friendly practices, Fineotex capitalises on rising demand. Strategic diversification into cleaning, hygiene, and oil segments positions it for sustained leadership in a growing market.
Shareholding Pattern
As of the September 2024 shareholding pattern, Fineotex Chemical Limited is primarily held by the promoters at 62.88 percent, foreign institutional investors hold 3.28 percent, and the public with 30.20 percent. As of September 2024, Ashish Kacholia holds a 2.74 percent stake in the company.
About Company
Fineotex Chemical Limited is a prominent Indian speciality chemicals manufacturer headquartered in Mumbai. Established in 1979 by Surendra Tibrewala, the company has grown to become one of the largest publicly listed chemical firms in India, focusing primarily on speciality performance chemicals for various industries, including textiles, FMCG (cleaning and hygiene), oil and gas, and more.
Written By Fazal Ul Vahab C H
Disclaimer
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