For Q3FY24, Fineotex Chemical’s(FCL) posted a revenue of INR 1385 Mn growing by 26% YoY and -5% QoQ on a consolidated basis. For
9MFY24 revenue stood at INR 4160 Mn, growing by 10%. Volumes grew by 37% Y-o-Y
FCL witnessed a strong quarter, with standalone profits for 9MFY24 jumping 101%. As cotton prices hit lower levels, we expect the company to perform better in the coming quarters. The recent fundraise by the company for foreign opportunities might bring additional impetus to company’s growth prospects. We remain positive on the stock. Currently, the stock is trading at 33x/25x/19x FY24E/FY25E/FY26E EPS, respectively. We assign a PE multiple of 30x to arrive at a target price of INR 570 (unchanged). Given the 65% upside from current levels, we remain optimistic about the long-term prospects of the company and accord a “BUY” rating on Fineotex Chemical Ltd.
Click here to download research report on Fineotex Chem by DR Choksey
