Fineotex Chemical’s share price has been on an upward trend, starting from around ₹325-₹330 in June 2024 and steadily climbing to approximately ₹392 per share. Analysts at KR Choksey foresee further growth, projecting the stock to potentially reach ₹573 per share in the long run. This suggests a significant 45% return for investors.
Key Factors Driving Fineotex Chemical’s Growth
KR Choksey’s report highlights several positive indicators for Fineotex Chemical. The company reported strong financial performance with an EBITDA margin of 26% in FY24, up from 22% in FY23. Sales and profits grew by 10% and 35% respectively in FY24. Despite a slight miss in quarterly estimates due to lower-than-expected sales growth, the company’s margins improved significantly.
Strategic Positioning for Growth
Fineotex Chemical is strategically positioned in the market for sustainable chemicals used in cleaning and hygiene products. The company is exploring partnerships, including potential supply agreements with major detergent manufacturers. Additionally, it plans to venture into the drilling chemicals segment, expecting robust growth opportunities.
Investment Recommendation
KR Choksey recommends a “BUY” rating for Fineotex Chemical shares, given the current trading multiple and future earnings potential. With the stock trading at 25 times FY25 earnings estimates and 19 times FY26 estimates, the target price is set at ₹573 per share. This represents a substantial 45% upside from the current levels.
Ashish Kacholia’s Stake
As per the shareholding pattern for Q1 2024, Ashish Kacholia holds a 2.81% stake in Fineotex Chemical, owning 31,35,568 shares.
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