This stock held by Ashish Kacholia gained 7% on September 1

The company is a leading speciality chemical producer for the textile industry.

Ashish Kacholia is renowned for identifying undiscovered gems in the small-to-midcap category, which have a high potential to deliver multibagger returns for their shareholders. He publicly holds 38 stocks which are worth Rs 1893 crore as of September 1. One of its 38 stocks is Fineotex Chemical Ltd.

On September 1, the shares of Fineotex Chemical Ltd is among the top gainers. At 12:23 pm, the stock is trading at Rs 295, up 7.18% for the day. Kacholia holds 2,142,534 equity shares of the company, a 1.9% stake in the company.

Fineotex Chemical Ltd belongs to S&P BSE group ‘A’ and has a market capitalisation of Rs 3256 crore. It is a leading speciality chemical producer for the textile industry. Vardhman Textiles Ltd and Raymond Ltd are among their clients. It also provides speciality chemicals for construction, fertilizer, water treatment, leather, and paint industries.

The company has 470 plus product categories including products like air freshener, floor cleaner, furniture maintainer, automatic dishwasher detergent, hand disinfectant, hand sanitiser, etc. It has a presence in 70 countries. As per FY22, about 42% of the revenue comes from international markets.

In recent times, the company has delivered excellent results. For Q1FY23, its revenue more than doubled to Rs 135.7 crore from Rs 63.2 crore, reported in Q1FY22. Its EBITDA improved by 167.3% on a YoY basis to Rs 26.24 crore in Q1FY23. Similarly, its net profit for the same quarter stood at Rs 20.3 crore, showcasing a 109.5% YoY growth. As per the FY22 period ending, the company has an ROE and ROCE of 23.4% and 31.1%, respectively.

About the shareholding pattern, 64.94% of the stake is owned by the promoters, 0.04% by FIIs, 5.35% by DIIs, and the rest 29.67% by non-institutional investors.

The company is trading at a TTM PE of 63.12x. The stock has a 52-week high and low of Rs 302.5 and Rs 100.85.