Mehabe score: 6 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Fineotex Chemical Limited engaged in manufacturing of Speciality chemicals.Site:FCLMain Symbol:FCL
Stock trades at 118.0, above its 50dma 114.61. It also trades above its 200dma 86.31. The stock remains bullish on techicals
The 52 week high is at 146.10 and the 52week low is at 29.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 20.23% CAGR over last 5 years
Weakness
– Debtor days have increased from 112.18 to 138.09 days.
-Promoter holding has decreased over last 3 years: -7.54%
Competition
– The industry trades at a mean P/E of 27.7x. Clean Science trades at the industry’s max P/E of 110.91x. FCL trades at a P/E of 29.5x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. FCL has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -0.3%. The max 1- month return was given by Solar Industries: a return of 17.41 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 63.28 cr compared to Rs 30.39 cr for period ended Jun 2020, a rise of 108.2%
Operating Profits reported at Rs 9.81 cr for period ended Jun 2021 vis-vis 4.11 for period ended Jun 2020 .
Operating Margins expanded 197.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.86 compared to Rs 1.01 for previous quarter ended Mar 2021 and Rs 0.7 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 251.0 cr for period ended TTM vis-vis sales of Rs 219.0 cr for the period ended Mar 2021, a healthy growth of 12.7%. The 3 year sales cagr stood at 11.3%.
Operating margins shrank to 18.0% for period ended TTM vis-vis 19.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 44.0 cr for period ended TTM vis-vis sales of Rs 43.0 cr for the period ended Mar 2021, rising 2.3%.
Company recorded a healthy Net Profit CAGR of 24.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 22.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 291% on a 1 Year basis vis-vis a return of 42% over the last 3 Years. – The compounded sales growth on a TTM bassis is 42% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 188% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 1.48% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 27.55% vis-vis 29.03% for Jun 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 20.23% CAGR over last 5 years – Debtor days have increased from 112.18 to 138.09 days.
-Promoter holding has decreased over last 3 years: -7.54%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 114.61 and is trading at 118.0, thus bullish price action wise.
