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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fineotex Chemical Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:12 pm

Market Cap 3,628 Cr.
Current Price 325
High / Low459/304
Stock P/E29.4
Book Value 61.7
Dividend Yield0.49 %
ROCE38.7 %
ROE30.1 %
Face Value 2.00
PEG Ratio0.57

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Fineotex Chemical Ltd

Competitors of Fineotex Chemical Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Fineotex Chemical Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales58756378105121136134109138132145138
Expenses45625364801001101098110510110798
Operating Profit14131015252226252933323840
OPM %23%17%16%19%24%18%19%19%26%24%24%26%29%
Other Income5331101222445
Interest0000000000000
Depreciation0001111111111
Profit before tax19151215252126262933344044
Tax %28%21%19%28%25%18%22%21%23%22%22%22%24%
Net Profit13121011191720212226263133
EPS in Rs1.181.010.860.971.671.491.791.862.002.332.322.832.95

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales809687102110127141182196219368517524
Expenses738677858298111148162178297404393
Operating Profit71091628293034354171113131
OPM %9%11%11%16%26%23%21%19%18%19%19%22%25%
Other Income223521051-11176711
Interest0100001111111
Depreciation0000111111345
Profit before tax911112029383434225673115136
Tax %28%27%30%28%31%24%29%28%35%20%22%22%
Net Profit688152029242414455790106
EPS in Rs0.530.630.581.151.562.322.042.021.183.854.987.979.48
Dividend Payout %9%8%9%9%13%4%10%5%4%8%8%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)33.33%0.00%87.50%33.33%45.00%-17.24%0.00%-41.67%221.43%26.67%57.89%
Change in YoY Net Profit Growth (%)0.00%-33.33%87.50%-54.17%11.67%-62.24%17.24%-41.67%263.10%-194.76%31.23%

Fineotex Chemical Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:21%
5 Years:26%
3 Years:38%
TTM:10%
Compounded Profit Growth
10 Years:35%
5 Years:40%
3 Years:41%
TTM:18%
Stock Price CAGR
10 Years:32%
5 Years:64%
3 Years:42%
1 Year:2%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:28%
Last Year:30%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:33 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11112222222222222222222223
Reserves4754546990113137147187240327425666
Borrowings6423152332750
Other Liabilities17192320262134355475679676
Total Liabilities8288101114140161195208267339423548766
Fixed Assets1214181927293641598499141178
CWIP0000000150009
Investments2116293947554852321789147286
Other Assets495854566677110114171238234260293
Total Assets8288101114140161195208267339423548766

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +11414196122891310797
Cash from Investing Activity +12-14-13-14-65-19-71-99-47
Cash from Financing Activity +-4-3-1-6-4-3-4-4-6-6-24
Net Cash Flow9-3-1-1-3146-28126

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow7.004.005.0014.0025.0028.0025.0032.0032.0038.0069.00106.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days649280848472981001381107289
Inventory Days596856667097846679985355
Days Payable6881757582507073101965379
Cash Conversion Cycle5579607572119112931161117264
Working Capital Days48806183761251221121421267679
ROCE %17%15%21%31%35%26%22%20%28%30%36%39%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024May 2024
Promoters64.82%64.82%64.82%64.94%64.97%65.00%65.04%65.04%65.04%65.04%65.03%64.46%
FIIs1.48%0.60%0.25%0.04%1.02%0.72%0.71%0.75%0.72%0.82%1.45%0.97%
DIIs6.14%6.15%6.15%5.35%4.01%3.65%3.65%3.65%3.86%3.69%3.70%3.68%
Public27.55%28.43%28.78%29.67%29.99%30.64%30.62%30.56%30.39%30.46%29.83%30.90%
No. of Shareholders64,07763,04764,85172,1461,05,7101,10,8551,10,3121,13,4691,16,8011,16,0671,22,0951,25,460

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund4,041,8280.32120.35892024-11-204541279.78%
Motilal Oswal Nifty Microcap 250 Index Fund38,4400.251.14892024-11-2043091.01%
Groww Nifty Total Market Index Fund890.010892024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)10.827.974.973.841.17
Diluted EPS (Rs.)10.827.974.973.841.17
Cash EPS (Rs.)11.478.475.364.161.39
Book Value[Excl.RevalReserv]/Share (Rs.)40.9532.1224.3219.5115.81
Book Value[Incl.RevalReserv]/Share (Rs.)40.9532.1224.3219.5115.81
Revenue From Operations / Share (Rs.)51.3746.6833.2519.7317.64
PBDIT / Share (Rs.)14.8910.836.935.243.27
PBIT / Share (Rs.)14.3510.446.705.113.16
PBT / Share (Rs.)14.2310.376.625.041.97
Net Profit / Share (Rs.)10.938.095.144.021.29
NP After MI And SOA / Share (Rs.)10.827.974.983.851.17
PBDIT Margin (%)28.9823.1920.8326.5718.53
PBIT Margin (%)27.9222.3620.1525.8917.94
PBT Margin (%)27.6922.2019.9025.5611.18
Net Profit Margin (%)21.2717.3215.4420.397.28
NP After MI And SOA Margin (%)21.0517.0814.9819.496.66
Return on Networth / Equity (%)26.7925.3221.0420.347.70
Return on Capital Employeed (%)34.6332.2127.3426.0319.95
Return On Assets (%)21.8520.8916.2515.946.29
Total Debt / Equity (X)0.010.020.010.010.01
Asset Turnover Ratio (%)1.171.361.210.610.70
Current Ratio (X)3.203.513.413.303.68
Quick Ratio (X)2.642.772.532.723.01
Inventory Turnover Ratio (X)6.986.374.923.464.03
Dividend Payout Ratio (NP) (%)18.485.016.020.004.25
Dividend Payout Ratio (CP) (%)17.604.785.750.003.90
Earning Retention Ratio (%)81.5294.9993.980.0095.75
Cash Earning Retention Ratio (%)82.4095.2294.250.0096.10
Interest Coverage Ratio (X)123.87146.1383.1180.2157.75
Interest Coverage Ratio (Post Tax) (X)91.90110.1562.6262.5543.75
Enterprise Value (Cr.)4052.882534.051965.68704.98155.93
EV / Net Operating Revenue (X)7.124.905.343.230.79
EV / EBITDA (X)24.5721.1325.6212.144.28
MarketCap / Net Operating Revenue (X)7.174.995.423.340.83
Retention Ratios (%)81.5194.9893.970.0095.74
Price / BV (X)9.137.407.613.480.97
Price / Net Operating Revenue (X)7.174.995.423.340.83
EarningsYield0.020.030.020.050.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Fineotex Chemical Ltd as of November 21, 2024 is: 548.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Fineotex Chemical Ltd is Undervalued by 68.82% compared to the current share price 325.00

Intrinsic Value of Fineotex Chemical Ltd as of November 21, 2024 is: 832.35

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Fineotex Chemical Ltd is Undervalued by 156.11% compared to the current share price 325.00

Last 5 Year EPS CAGR: 51.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.67%, which is a positive sign.
  2. The company has higher reserves (196.62 cr) compared to borrowings (3.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (211.46 cr) and profit (45.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 94.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 85.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Fineotex Chemical Ltd:
    1. Net Profit Margin: 21.27%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 34.63% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 26.79% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 91.9
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.64
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 29.4 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Fineotex Chemical Ltd. is a Public Limited Listed company incorporated on 30/01/2004 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH2004PLC144295 and registration number is 144295. Currently Company is involved in the business activities of Manufacture of chemical products or preparations of a kind used in the textiles, paper, leather and like industries. Company’s Total Operating Revenue is Rs. 250.08 Cr. and Equity Capital is Rs. 22.15 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - Others42 & 43, Manorama Chambers, Mumbai Maharashtra 400050investor.relations@fineotex.com
http://www.fineotex.com
Management
NamePosition Held
Mr. Surendrakumar TibrewalaChairman & Managing Director
Mr. Sanjay TibrewalaExecutive Director & CFO
Mrs. Aarti JhunjhunwalaExecutive Director
Mrs. Bindu ShahIndependent Director
Dr. Sunil WaghmareIndependent Director
Mr. Alok DhanukaIndependent Director
Mr. Navin MittalIndependent Director

FAQ

What is the latest intrinsic value of Fineotex Chemical Ltd?

The latest intrinsic value of Fineotex Chemical Ltd as on 21 November 2024 is ₹548.68, which is 68.82% higher than the current market price of ₹325.00.

What is the Market Cap of Fineotex Chemical Ltd?

The Market Cap of Fineotex Chemical Ltd is 3,628 Cr..

What is the current Stock Price of Fineotex Chemical Ltd as on 21 November 2024?

The current stock price of Fineotex Chemical Ltd as on 21 November 2024 is ₹325.

What is the High / Low of Fineotex Chemical Ltd stocks in FY 2024?

In FY 2024, the High / Low of Fineotex Chemical Ltd stocks is 459/304.

What is the Stock P/E of Fineotex Chemical Ltd?

The Stock P/E of Fineotex Chemical Ltd is 29.4.

What is the Book Value of Fineotex Chemical Ltd?

The Book Value of Fineotex Chemical Ltd is 61.7.

What is the Dividend Yield of Fineotex Chemical Ltd?

The Dividend Yield of Fineotex Chemical Ltd is 0.49 %.

What is the ROCE of Fineotex Chemical Ltd?

The ROCE of Fineotex Chemical Ltd is 38.7 %.

What is the ROE of Fineotex Chemical Ltd?

The ROE of Fineotex Chemical Ltd is 30.1 %.

What is the Face Value of Fineotex Chemical Ltd?

The Face Value of Fineotex Chemical Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Fineotex Chemical Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE