Fineotex Chemical Shares Hit Life High After Profit Jumps In Q3

Shares of Fineotex Chemical Ltd. jumped to a lifetime high on Thursday after its profit jumped in the third quarter.

The company's net profit jumped 46.5% year-on-year to Rs 32.9 crore in the October-December quarter of FY24, according to an exchange filing.

Revenue rose 26.76% to Rs 138.4 crore.

Fineotex Chemical Q3 Results Highlights (Consolidated, YoY)

• Revenue up 26.76% at Rs 138.4 crore.

• Ebitda up 41.43% at Rs 40.3 crore.

• Margin expands 302 bps to 29.14%.

• Net profit up 46.5% at Rs 32.9 crore.

The company is a growing specialty chemical manufacturer with international strategic partnerships with Eurodye-CTC, Belgium & HealthGuard Australia, which will drive further growth opportunities for the company both in India and abroad, said KRChoksey Share & Securities Pvt.

"The upcoming addition to its manufacturing capacity will add a strong base for generating future growth, management’s tight control over working capital cycle and margins will ensure good earnings growth going forward," it said in a note.

The brokerage has a 'buy' rating for the stock, with a target price of Rs 531, implying an upside of 25.56% from the current market price.

Shares of the company rose as much as 8.21% before paring gains to trade 6.41% higher at 11:11 a.m., compared to a 0.2% advance in the NSE Nifty 50.

The stock has risen 64% in the last 12 months. Total traded volume so far in the day stood at 7.1 times its 30-day average. The relative strength index was at 79, indicating that the stock may be overbought.