Fineotex Chemical Gains Attention as Promoters Raise Stake Amid Stock Dip

Promoters Continue Buying Despite a 38% Stock Drop

Fineotex Chemical, a specialty chemicals manufacturer backed by renowned investor Ashish Kacholia, has been in the spotlight following recent stake acquisitions by its promoters. Despite the continued buying activity, the stock has witnessed a sharp 38% decline over the past year, reflecting broader market challenges and weak financial performance.

However, Fineotex Chemical remains a multibagger stock, having delivered over 1,400% returns in the past five years. The company’s long-term trajectory has been strong, but recent financial headwinds and investor sentiment have weighed on the stock.

Promoters have been increasing their stake in Fineotex Chemical, even as the stock has dropped 38% over the past year, reflecting their confidence in the company’s long-term growth potential.

Promoters Make Strategic Stake Acquisitions

In a recent regulatory filing, Fineotex Chemical disclosed that Aarti Mitesh Jhunjhunwala, one of its promoters, acquired 4,000 equity shares through open market transactions on March 28, 2025. The purchase, valued at ₹9.52 lakh, increased her holding from 81,050 shares to 85,050 shares. However, her overall stake in the company remained relatively small at 0.07%.

Similarly, earlier in March 2025, another Fineotex Chemical promoter, Sanjay Tibrewala, purchased 20,000 shares worth ₹41.31 lakh on March 6, 2025. With this acquisition, his total shareholding increased from 34,34,900 shares to 34,54,900 shares, raising his stake slightly from 3% to 3.02%.

According to the company’s December 2024 shareholding data, the Promoter & Promoter Group collectively held 7,20,25,027 equity shares, representing a 62.86% stake in Fineotex Chemical. The remaining 37.14% is held by public shareholders.

Promoters, including Aarti Mitesh Jhunjhunwala and Sanjay Tibrewala, have steadily increased their stakes in Fineotex Chemical, signaling confidence in the company’s long-term growth prospects despite recent stock declines.

Ashish Kacholia’s Stake in Fineotex Chemical

Veteran investor Ashish Kacholia, known for his strategic investments in high-growth companies, holds a significant stake in Fineotex Chemical. As per December 2024 shareholding data, Kacholia owns 31,35,568 equity shares, translating to a 2.7% stake in the company.

His Fineotex Chemical holding is valued at approximately ₹72.1 crore, making it one of his notable investments in the specialty chemicals sector. Kacholia’s continued investment in the company suggests a strong belief in its long-term potential, despite recent stock volatility and financial challenges.

Ashish Kacholia holds a 2.7% stake in Fineotex Chemical, valued at approximately ₹72.1 crore, reinforcing his confidence in the company’s long-term growth story.

Stock Performance: A Tale of Two Extremes

Despite recent stake purchases by promoters, Fineotex Chemical’s stock has struggled over the past year, declining 38%. The stock remained largely flat in March 2025, gaining just 0.6%, following five consecutive months of losses.

• February 2025: Stock dropped nearly 30%

• January 2025: Declined 1.6%

• December 2024: Fell 6.2%

• November 2024: Dropped 6%

• October 2024: Declined 7.6%

Despite these short-term losses, Fineotex Chemical remains a multibagger, delivering over 1,400% returns in the last five years. This highlights its strong long-term growth, even as short-term headwinds impact its current valuation.

The stock has lost 38% over the past year, with five consecutive months of losses, but remains a multibagger with over 1,400% returns in five years.

Weak Q3FY25 and Nine-Month Financial Performance

Fineotex Chemical’s financial performance has shown signs of weakness, contributing to its recent stock decline.

Q3FY25 (October–December 2024) Financial Results

• Net Sales: ₹125.92 crore (9% YoY decline)

• Net Profit: ₹27.63 crore (15% YoY decline)

9MFY25 (April–December 2024) Financial Results

• Net Sales: ₹413.55 crore (1% YoY decline)

• Net Profit: ₹89.08 crore (2% YoY decline)

The decline in both sales and profits suggests ongoing challenges in demand and profitability, leading to investor caution despite promoter and institutional interest in the stock.

Fineotex Chemical’s Q3FY25 net profit fell 15% YoY, while 9MFY25 net profit declined 2% YoY, indicating ongoing financial challenges that have contributed to the stock’s recent decline.

Growing Promoter Stake vs. Market Uncertainty

Fineotex Chemical has garnered attention due to increased promoter buying, even as its stock continues to face downward pressure.

While long-term investors like Ashish Kacholia and company promoters are increasing their stakes, short-term financial struggles and declining stock performance have kept broader market sentiment cautious.

For now, Fineotex Chemical remains a stock to watch, as promoters signal confidence in the company’s long-term potential, but recent financial weakness and stock declines pose immediate concerns for investors.