Check Before You Invest : Fineotex Chemical Ltd

Q: Which industry/sub-sector does Fineotex Chemical Ltd belong to?

Fineotex Chemical Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Fineotex Chemical Ltd a good quality company?

Fineotex Chemical Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Fineotex Chemical Ltd undervalued or overvalued?

Fineotex Chemical Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 39.91, Historic Median: 40.83. Price to Book, Current: 4.86, Historic Median: 8.65. Price to Sales, Current: 9.24, Historic Median: 8.98. EV to EBITDA, Current: 29.82, Historic Median: 29.97

Q: Is Fineotex Chemical Ltd a good buy now?

Fineotex Chemical Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Fineotex Chemical Ltd?

Fineotex Chemical Ltd revenue growth is 4.8% for FY-2025, which is below its 5-year CAGR of 27.8%, indicating slower growth.

Q: Gross Profit margin of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Gross profit margin which is the profit after deduction of direct costs, is 30.2% for FY-2025, which is in line with its 5-year median of 30.2%, indicating stable margins.

Q: Operating Profit Margin of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.06% for FY-2025, which is in line with its 5-year median of 24.06% indicating stable margins.

Q: Net Profit Margin of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Net Profit Margin is 22.14% for FY-2025, is in line with its 5-year median of 22.14%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 30.2, Historic Median: 30.2. Operating Profit Margin (%), Current: 24.06, Historic Median: 24.06. Net Profit Margin (%), Current: 22.14, Historic Median: 22.14

Q: Return on Asset of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Return on Asset is 17.27%, which is below its 5-year historical median of 18.2%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Return on capital employed is 25.39% for FY-2025, which is below its 5-year historical median of 27.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Fineotex Chemical Ltd

Snapshot

Q.1 Which industry/sub-sector does Fineotex Chemical Ltd belong to?

Fineotex Chemical Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Fineotex Chemical Ltd a good quality company?

Fineotex Chemical Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Fineotex Chemical Ltd undervalued or overvalued?

Fineotex Chemical Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	39.91	40.83
Price to Book	4.86	8.65
Price to Sales	9.24	8.98
EV to EBITDA	29.82	29.97

Q.4 Is Fineotex Chemical Ltd a good buy now?

Fineotex Chemical Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Fineotex Chemical Ltd?

Fineotex Chemical Ltd revenue growth is 4.8% for FY-2025, which is below its 5-year CAGR of 27.8%, indicating slower growth.

Q.2 Gross Profit margin of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Gross profit margin which is the profit after deduction of direct costs, is 30.2% for FY-2025, which is in line with its 5-year median of 30.2%, indicating stable margins.

Q.3 Operating Profit Margin of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.06% for FY-2025, which is in line with its 5-year median of 24.06% indicating stable margins.

Q.4 Net Profit Margin of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Net Profit Margin is 22.14% for FY-2025, is in line with its 5-year median of 22.14%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	30.2	30.2
Operating Profit Margin (%)	24.06	24.06
Net Profit Margin (%)	22.14	22.14

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Return on Asset is 17.27%, which is below its 5-year historical median of 18.2%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Return on capital employed is 25.39% for FY-2025, which is below its 5-year historical median of 27.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Return on equity is 19.72% for FY-2025, which is below its 5-year historical median of 21.84%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Cash conversion cycle is 63 days, below its 5-year historical median of 80 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.78	1
ROE (%)	19.72	21.84
ROCE (%)	25.39	27.29
Cash Conversion Cycle	63 days	80 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Fineotex Chemical Ltd?

Fineotex Chemical Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Fineotex Chemical Ltd?

Q.1 Promoter shareholding and pledge status of Fineotex Chemical Ltd?

Promoters hold 62.30% of the Fineotex Chemical Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Fineotex Chemical Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Fineotex Chemical Ltd vs industry peers?

Fineotex Chemical Ltd revenue CAGR is 27.80%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4.8	7.5
Gross Profit Growth (%)	-8.3	12.1
Operating Profit Growth (%)	-6.2	11.7
Net Profit Growth (%)	-12.6	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.78	0.93
ROE (%)	19.72	10.17
ROCE (%)	25.39	12.96
Cash Conversion Cycle (days)	62.83	62

Valuation & price assessment

Q.1 Stock return of Fineotex Chemical Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 26.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	26.9%	31.2%	2.2%	38.2%

Q.2 Valuation ratios of Fineotex Chemical Ltd vs historical?

The current P/E ratio of 39.91 is in line with than its historical median of 40.83, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	39.91	40.83	28.17
Price to Book	4.86	8.65	2.22
Price to Sales	9.24	8.98	1.93
EV to EBITDA	29.82	29.97	14.20

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Check Before You Invest : Fineotex Chemical Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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