Ashish Kacholia Stocks: Fineotex Chemical shares up 4% intraday on fund raising news; know why brokerage bullish on this counter

Ashish Kacholia-backed speciality chemical stock Fineotex Chemical jumped 4 per cent intraday to Rs 169 per share on the BSE during Tuesday’s trading session. The surge was on the company's announcement that it was considering raising funds via the issuance of shares. 

During the March quarter, ace investor Kacholia added Fineotex Chemical to its portfolio by picking up 2,042,534 equity shares, which translates into a 1.8 per cent stake in the company, as per the shareholding pattern of the company available on the BSE. 

Fineotex Chemical in a filing to exchanges said that a meeting of the Board is scheduled on Friday, June 24, 2022, to consider the number of decisions including raising funds by issue of equity shares and/or other equity-linked securities, through permissible modes. 

According to the stock analysis website trendline.com, the total worth of shares held by Kacholia is around Rs 34 crore. The stock in the last months has gained nearly 30 per cent against around a 6.5 per cent decline in the S&P BSE Sensex during the same period.

At around 01:20 PM, the shares of Fineotex up over 2.5 per cent to Rs 166.5 per share on the BSE as compared to over 2 per cent surge in the S&P BSE Sensex at the same time. 

Domestic brokerage firm Edelweiss Research maintained bullish outlook on the speciality chemicals sector anticipating the favourable demand environment to sustain and companies to incur aggressive capex to catalyse growth 

Edelweiss Research listed key highlights for Fineotex: Strong growth seen in textile chemicals in domestic as well export markets; aggressively expanding product basket in the detergent category; Margins are strong despite rising input costs and renewed focus on organic growth. 

The company has renewed its focus on driving organic growth to tap into the strong growth opportunity in the detergent industry. All in all, it’s on a strong growth path on the back of sustained capacity addition in the near term along with focus on value addition, it added.