Fineotex Chemical
Fineotex Chemical
ChemicalsKey Fundamentals
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Key Insights
Strengths
3- Company is almost debt free.
- Company is expected to give good quarter
- Company has been maintaining a healthy dividend payout of 23.8%
Weaknesses
2- Stock is trading at 7.62 times its book value
- Debtor days have increased from 102 to 137 days.
Growth Rate
AI Analysis — Bull vs Bear
Fineotex Chemical Ltd is a nearly debt-free specialty chemicals company with a market cap of ₹4,489 Cr trading at a P/E of 29.8x. The company delivered strong TTM sales growth of 91% (driven by Q4 FY26 revenue up 162% YoY to ₹313.7 Cr), though FY25 consolidated PAT declined 9.8% YoY to ₹109 Cr and ROE has compressed from a 5-year average of 21% to 13% in the last year.
- Near debt-free balance sheet provides financial flexibility and low interest burden (interest cost just ₹0.53 Cr in FY25 vs operating profit of ₹81+ Cr)
- Q4 FY26 consolidated revenue surged 162% YoY to ₹313.7 Cr, signaling strong demand recovery and possible inflection in growth trajectory
- TTM compounded sales growth of 91% is significantly ahead of the 10-year CAGR of 22%, indicating accelerating top-line momentum
- 10-year compounded profit CAGR of 20% and 10-year stock CAGR of 31% demonstrate long-term consistent value creation
- 5-year average ROE of 21% reflects efficient capital deployment over a meaningful time period
- Dividend yield of 2.12% is attractive for a growth-oriented specialty chemicals mid-cap, providing some downside support
- P/B ratio of 4.99x is supported by consistently high return ratios (5-year ROE of 21%), suggesting the premium is backed by earnings quality
- Company is expected to deliver a good upcoming quarter per market consensus, building on the Q4 FY26 momentum
- Debtor days have increased sharply from 102 to 137 days, indicating deteriorating working capital efficiency and potential collection risk
- FY25 consolidated PAT declined to ₹109.2 Cr from ₹121 Cr in FY24, a fall of approximately 9.8% YoY despite revenue being largely flat
- Last year ROE compressed to 13% from a 5-year average of 21%, representing a 38% decline in return on equity
- 3-year compounded profit CAGR of only 7% lags the 3-year sales CAGR of 14%, suggesting margin pressure and inability to convert revenue growth into proportional profit growth
- P/E of 29.8x is elevated relative to the recent profit growth of 7% (3-year CAGR), implying a PEG ratio well above 1x
- FY25 consolidated PBT fell to ₹141.2 Cr from ₹157.6 Cr in FY24, showing pre-tax margin compression from roughly 27% to 25%
- TTM profit growth of 17% materially trails TTM sales growth of 91%, raising questions about operating leverage and cost discipline at scale
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1FY27 PAT surges 93% Jul 23
Consolidated PAT jumped 92.61% to ₹4,821 Lakhs in Q1FY27, backed by 164.48% revenue growth and 130.84% volume growth. Statutory auditors issued an unqualified review report, indicating clean financials.
- Q1 FY27 earnings call scheduled Jul 20
Fineotex Chemical will host an analyst conference call on July 24, 2026 at 5:00 PM IST to discuss Q1 FY27 results.
TL;DR: Fineotex Chemical delivered an exceptionally strong Q1FY27 with PAT nearly doubling and volumes more than doubling, signalling robust demand and operational execution. No headwinds are visible in recent coverage. The trend is clearly improving, and the upcoming earnings call on Jul 24 may provide further clarity on sustainability of this growth trajectory.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 132 | 145 | 138 | 153 | 142 | 146 | 126 | 120 | 137 | 138 | 184 | 314 | 377 |
| Expenses | 101 | 107 | 98 | 115 | 107 | 109 | 92 | 99 | 112 | 107 | 149 | 270 | 317 |
| Operating Profit | 32 | 38 | 40 | 38 | 35 | 36 | 34 | 21 | 25 | 31 | 35 | 44 | 59 |
| OPM % | 24% | 26% | 29% | 25% | 25% | 25% | 27% | 18% | 18% | 23% | 19% | 14% | 16% |
| Other Income | 4 | 4 | 5 | 4 | 5 | 7 | 5 | 8 | 9 | 8 | 7 | 9 | 10 |
| Interest | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Depreciation | 1 | 1 | 1 | 2 | 2 | 2 | 3 | 2 | 3 | 3 | 3 | 4 | 4 |
| PBT | 34 | 40 | 44 | 40 | 38 | 41 | 36 | 26 | 31 | 35 | 38 | 48 | 65 |
| Tax % | 22% | 22% | 24% | 24% | 22% | 21% | 24% | 24% | 21% | 26% | 21% | 9% | 26% |
| Net Profit | 26 | 31 | 33 | 30 | 29 | 32 | 28 | 20 | 25 | 26 | 30 | 44 | 48 |
| EPS in Rs | 0.23 | 0.28 | 0.29 | 0.27 | 0.26 | 0.28 | 0.24 | 0.17 | 0.22 | 0.23 | 0.23 | 0.27 | 0.33 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 102 | 110 | 127 | 141 | 182 | 196 | 219 | 368 | 517 | 569 | 533 | 772 | 1,012 |
| Expenses | 85 | 82 | 98 | 111 | 148 | 162 | 178 | 297 | 404 | 421 | 406 | 637 | 843 |
| Operating Profit | 16 | 28 | 29 | 30 | 34 | 35 | 41 | 71 | 113 | 148 | 127 | 135 | 169 |
| OPM % | 16% | 26% | 23% | 21% | 19% | 18% | 19% | 19% | 22% | 26% | 24% | 17% | 17% |
| Other Income | 5 | 2 | 10 | 5 | 1 | -11 | 17 | 6 | 7 | 17 | 24 | 33 | 34 |
| Interest | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 3 | 4 | 6 | 9 | 13 | 15 |
| PBT | 20 | 29 | 38 | 34 | 34 | 22 | 56 | 73 | 115 | 158 | 141 | 153 | 186 |
| Tax % | 28% | 31% | 24% | 29% | 28% | 35% | 20% | 22% | 22% | 23% | 23% | 18% | — |
| Net Profit | 15 | 20 | 29 | 24 | 24 | 14 | 45 | 57 | 90 | 121 | 109 | 125 | 148 |
| EPS in Rs | 0.11 | 0.16 | 0.23 | 0.2 | 0.2 | 0.12 | 0.38 | 0.5 | 0.8 | 1.08 | 0.94 | 0.93 | 1.06 |
| Div. Payout % | 9% | 13% | 4% | 10% | 5% | 4% | 8% | 8% | 10% | 15% | 8% | 48% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 23 | 116 |
| Reserves | 54 | 69 | 90 | 113 | 137 | 147 | 187 | 240 | 327 | 425 | 708 | 766 |
| Borrowings | 2 | 3 | 1 | 5 | 2 | 3 | 3 | 2 | 7 | 5 | 0 | 8 |
| Other Liabilities | 23 | 20 | 26 | 21 | 34 | 35 | 54 | 75 | 67 | 96 | 83 | 269 |
| Total Liabilities | 101 | 114 | 140 | 161 | 195 | 208 | 267 | 339 | 423 | 548 | 815 | 1,159 |
| Fixed Assets | 18 | 19 | 27 | 29 | 36 | 41 | 59 | 84 | 99 | 141 | 179 | 278 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 1 | 5 | 0 | 0 | 0 | 21 | 2 |
| Investments | 29 | 39 | 47 | 55 | 48 | 52 | 32 | 17 | 89 | 147 | 330 | 317 |
| Other Assets | 54 | 56 | 66 | 77 | 110 | 114 | 171 | 238 | 234 | 260 | 284 | 562 |
| Total Assets | 101 | 114 | 140 | 161 | 195 | 208 | 267 | 339 | 423 | 548 | 815 | 1,159 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 14 | 14 | 19 | 6 | 12 | 28 | 9 | 13 | 107 | 97 | 69 | -24 |
| Investing | -14 | -13 | -14 | -6 | 5 | -19 | -7 | 1 | -99 | -47 | -273 | 113 |
| Financing | -3 | -1 | -6 | -4 | -3 | -4 | -4 | -6 | -6 | -24 | 176 | -63 |
| Net Cash Flow | -3 | -1 | -1 | -3 | 14 | 6 | -2 | 8 | 1 | 26 | -27 | 27 |
| Free Cash Flow | 8 | 12 | 14 | 4 | 4 | 22 | -15 | -9 | 88 | 49 | 1 | -49 |
| CFO/OP | 109 | 84 | 104 | 52 | 63 | 104 | 46 | 43 | 119 | 92 | 77 | 0 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 80 | 84 | 84 | 72 | 98 | 100 | 138 | 110 | 72 | 89 | 79 | 137 |
| Inventory Days | 56 | 66 | 70 | 97 | 84 | 66 | 79 | 98 | 53 | 55 | 75 | 112 |
| Days Payable | 75 | 75 | 82 | 50 | 70 | 73 | 101 | 96 | 53 | 79 | 66 | 117 |
| Cash Conversion Cycle | 60 | 75 | 72 | 119 | 112 | 93 | 116 | 111 | 72 | 64 | 88 | 133 |
| Working Capital Days | 58 | 73 | 73 | 114 | 118 | 107 | 136 | 125 | 71 | 76 | 104 | 140 |
| ROCE % | 21% | 31% | 35% | 26% | 22% | 20% | 28% | 30% | 36% | 39% | 24% | 18% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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64 extracted metrics + investor summaries across FY10–FY27.
Documents
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Company Information
Incorporated in 1979, Fineotex Chemicals Ltd is engaged in the business of manufacturing auxiliaries and specialty chemicals for textiles, construction, water treatment, fertilizer, leather, and paint industries[1]
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