A stock which matches almost all parameters of a potential multi-bagger - Fineotex Chemical Limited (FCL)
#FCL #Fineotex #FineotexChemical 1/
#FCL #Fineotex #FineotexChemical 1/
2/
Business: Textile Chemical manufacturing. Leadership position
CMP: 113
52W High / Low: 146 / 41
PE Ratio: 32
PB Ratio: 6.4
Closest Listed Competitor:
Rossari Biotech. Trading at PE of 82. Looks to expand capacity to 2x in next 3 years. Forward 3 year PE is still 41 (82/2)
Business: Textile Chemical manufacturing. Leadership position
CMP: 113
52W High / Low: 146 / 41
PE Ratio: 32
PB Ratio: 6.4
Closest Listed Competitor:
Rossari Biotech. Trading at PE of 82. Looks to expand capacity to 2x in next 3 years. Forward 3 year PE is still 41 (82/2)
3/
Well, what about expansion plans of FCL?
Just expanded Consol capacity from 43,000MT to 79,000MT with commencement of Ambernath capacity w.e.f. 9th November, 2021
1 year Fwd PE ~17
Company has passed a BR to raise 200 Cr. Adding the Ambernath capacity costed ~INR 27 Cr
Well, what about expansion plans of FCL?
Just expanded Consol capacity from 43,000MT to 79,000MT with commencement of Ambernath capacity w.e.f. 9th November, 2021
1 year Fwd PE ~17
Company has passed a BR to raise 200 Cr. Adding the Ambernath capacity costed ~INR 27 Cr
4/
EBITDA Margin: ~19%
10 Yr Sales CAGR: 10.6%
10 Yr EPS CAGR: 21.9%
ROE: 22.5%
ROCE: 29.4%
Amazing, isn’t it? Cherry on the cake:
Debt-Equity Ratio: 0.04, i.e., almost a debt free company
EBITDA Margin: ~19%
10 Yr Sales CAGR: 10.6%
10 Yr EPS CAGR: 21.9%
ROE: 22.5%
ROCE: 29.4%
Amazing, isn’t it? Cherry on the cake:
Debt-Equity Ratio: 0.04, i.e., almost a debt free company
5/
International Tie-Ups:
A.Eurodye CTC, Belgium: For distribution of pre-treatment dyeing textile solutions in India.
Will add the existing sales of Eurodye in India
B.HealthGuard, Australia: JV for global marketing. HG produces metal-free, anti-viral chemical solutions
International Tie-Ups:
A.Eurodye CTC, Belgium: For distribution of pre-treatment dyeing textile solutions in India.
Will add the existing sales of Eurodye in India
B.HealthGuard, Australia: JV for global marketing. HG produces metal-free, anti-viral chemical solutions
6/
R&D Expenditure:
Apart from this, FCL has tied up with Sasmira Institute for research into Textile chemicals.
Shows the seriousness of the company for constantly improving and expanding its product line
R&D Expenditure:
Apart from this, FCL has tied up with Sasmira Institute for research into Textile chemicals.
Shows the seriousness of the company for constantly improving and expanding its product line
7/
Recently, Nippon Mutual Fund bought ~6.5% stake and an FII purchased 1.5% stake in the company.
Promoters ~64%. Public ~28%
The company has presence in Malaysia through an erstwhile acquisition of Biotex through which company controls a capacity of ~6500MT in Malaysia
Recently, Nippon Mutual Fund bought ~6.5% stake and an FII purchased 1.5% stake in the company.
Promoters ~64%. Public ~28%
The company has presence in Malaysia through an erstwhile acquisition of Biotex through which company controls a capacity of ~6500MT in Malaysia
8/
Moreover, the company has recently appointed a new CEO, Mr. Arindam Choudhury who is highly experienced in this space
Moreover, the company has recently appointed a new CEO, Mr. Arindam Choudhury who is highly experienced in this space
9/
From my personal experience, the company is very shareholder friendly and even replies to our queries with a very short turnaround time.
Just sharing from an educational perspective based on my study since the last 6-8 months.
Disclaimer: Invested. Not financial advice
From my personal experience, the company is very shareholder friendly and even replies to our queries with a very short turnaround time.
Just sharing from an educational perspective based on my study since the last 6-8 months.
Disclaimer: Invested. Not financial advice
Special thanks to @YSedani and @Abhishek5gt
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