Smallcap Stock Fineotex Chemical Gets BUY Rating From Brokerages For More Than 50 Upside. Image Source: Canva
Fineotex Chemicals Limited (FCL) share price remained in focus in Wednesday’s trading session as the stock of the smallcap company received ‘BUY’ rating by the analysts. The Mumbai-headquartered company is a speciality chemical-producing group. The company has forayed into high growth FMCG segments and has been scaling up at a fast pace with these segments contributing 40 per cent to the overall topline in FY23. The counter has delivered 53.32 per cent returns in the last one year whereas the sectoral returns were 34.06 per cent. The company ranks 22nd out of 140 companies in the Chemicals sector.
Fineotex Chemicals Share Price Target
The domestic broking firm Deven Choksey Research has a ‘BUY’ call on the counter with a potential upside of 65 per cent. The analysts at the brokerage recommended a share price target of Rs 571 per share.
The research report, said “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. and assign a PE multiple of 30x to arrive at a target price of Rs 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,” it added.
Another brokerage NVS Wealth Managers has tagged ‘BUY’ rating on the stock, recommending a share price target of Rs 556 and 603 per share. “The company is expected to continue its strong operational performance in FY24 with an expected profitability of Rs 125 Crores. The next 2 years are poised to be the best years in thecompany’s historywith the company expected to gross Rs. 175 Crores PAT in FY25 and Rs.245 Crore PAT in FY26. FCL trades at an extremely attractive valuation of 15x Y26earnings and 21xFY25 earnings,” the report said.
Fineotex Chemicals Share Price History
The counter has delivered multibagger returns of a whopping 459.69 per cent in the last three years, as per data available on the BSE.
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