Fineotex Chemical Shares Rise Following Promoter's Stake Increase

Fineotex Chemical’s stock witnessed an upward movement of more than 2% on Friday after one of its promoters increased their stake in the specialty chemicals company. The stock, which is part of ace investor Ashish Kacholia’s portfolio, climbed as much as 2.6% to reach ₹244.45 per share on the BSE.

As of 12:05 PM, Fineotex Chemical share price were trading at ₹239.75 apiece on the BSE, reflecting a 0.65% increase.

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Company Overview

Fineotex Chemical is a leading manufacturer of specialty chemicals and enzymes catering to industries such as textiles, leather, construction, water treatment, and more. The company has built a strong presence in both domestic and international markets, offering sustainable and eco-friendly chemical solutions. Over the years, Fineotex has expanded its product portfolio and strengthened its research and development capabilities to cater to evolving industry needs.

Promoter’s Share Acquisition

In a regulatory disclosure, the company announced that one of its promoters had acquired 20,000 equity shares through open market transactions.

Sanjay Tibrewala, a promoter of Fineotex Chemical, purchased 20,000 equity shares worth ₹41,31,600 on March 6, 2025. Before this acquisition, Tibrewala owned 34,34,900 shares, accounting for a 3% stake in the company. Following the purchase, his holding has increased to 34,54,900 shares, representing a 3.02% stake, according to the regulatory filing.

The move signifies the promoter’s confidence in the company’s long-term growth potential. Typically, when promoters increase their stake, it is seen as a positive indicator by investors, as it reflects their belief in the company’s future prospects.

As per Fineotex Chemical’s shareholding pattern as of December 2024, the Promoter & Promoter Group collectively held 7,20,25,027 shares, translating to a 62.86% stake, while public shareholders owned the remaining 37.14%.

Ashish Kacholia’s Investment in Fineotex Chemical

Renowned investor Ashish Kacholia holds 31,35,568 shares of Fineotex Chemical, representing a 2.7% stake as of the December 2024 quarter. The total valuation of his investment stands at ₹74.8 crore.

Kacholia, known for his investments in high-growth small and mid-cap stocks, has been actively investing in companies with strong fundamentals and growth potential. His stake in Fineotex Chemical further validates the company’s long-term value proposition.

Stock Performance and Market Outlook

Fineotex Chemical’s stock has witnessed a 16% decline over the past month and a 34% correction in the last six months. Over the past year, the small-cap stock has dropped by 39%. However, it has delivered exceptional long-term gains, generating a staggering 1,043% return over the past five years.

Despite recent corrections, analysts believe that the long-term outlook for the specialty chemicals sector remains positive, driven by increasing demand from industries such as textiles, pharmaceuticals, and water treatment. Moreover, Fineotex Chemical’s focus on innovation and sustainability positions it well for future growth.

Investors will be closely monitoring the company’s upcoming earnings report and management commentary to assess its future trajectory. While the stock has faced volatility in the short term, continued promoter interest and institutional investments could provide a boost to investor sentiment.

With its established market presence, strong product portfolio, and increasing focus on sustainability, Fineotex Chemical remains a key player in the specialty chemicals segment. As the sector continues to grow, the company’s ability to expand its market share and improve financial performance will be crucial in determining its stock performance in the coming years.