Ashish Kacholia Multibagger Stock: This specialty chemical company's share price doubled in 2 months! What should investors know?

Ashish Kacholia Multibagger Stock: Ace investor Ashish Kacholia-backed specialty chemical company – Fineotex Chemical share price has doubled in the last two months on the BSE. The counter has touched a new life high of Rs 409.45 apiece, after gaining around 9 per cent on the BSE intraday on Tuesday. 

The multibagger stock surged from Rs 202.95 per share on July 14, 2022, to today’s record high of Rs 409.45 per share, registering a growth of over 101 per cent in two months. It has reported almost 190 per cent growth in 2022 so far and around 220 per cent surge in the last one year on the BSE.   

The surge could be mainly attributed due to the strong April-June quarter earnings for the financial year 2022-23 that came in July. The company’s consolidated profit rose 110 per cent year-on-year (YoY) to Rs 20.3 crore and it reported a 115 per cent YoY jump in its consolidated revenue at Rs 135.8 crore.  

Renowned investor Kacholia, who is fondly called as Big Whale of the Indian stock market, held 21,42,534 equity shares or about 1.9 per cent stakes in Fineotex Chemical, according to the June shareholding pattern of the company available on the BSE. He publicly holds 38 stocks with a net worth of over Rs 1,979.6 crore as of September 13, 2022, as per trendlyne.com. 

At around 02:00 PM, the shares of Fineotex were up over 2 per cent to Rs 384 per share on the BSE as compared to a 0.82 per cent surge in the S&P BSE Sensex at the same time.   

Fineotex Chemical, a strong player in textile chemicals, is aggressively expanding its product basket into detergents and the home and personal care segment, Edelweiss Research said, adding that the company continues to focus on value addition in textile chemicals to drive margins. 

Growth may be driven by market share gain in home and personal care, the brokerage said, adding that the company is focusing on sustained capacity addition to tap into the strong organic growth opportunity. 

Besides, the management of Fineotex Chemical believes its foray into detergent inducts and new customer and product addition in this category would drive near-term growth, Edelweiss said.  

Fineotex Chemicals is engaged in the business of manufacturing textile chemicals, auxiliaries, and specialty chemicals. The company has major textile brands as trusted customers and product quality has a good brand recall. The company’s export portfolio includes more than 60 nations.