Fineotex Chemical Limited (FCL) AI Stock Analysis

• Market Cap: ₹25.62B
• Dividend Yield: 0.65%
• Average Volume (3M): 239.10K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.40
• Revenue Growth: -10.12%
• EPS Growth: -22.38%
• Country: IN
• Employees: 205
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 1,145,750,900
• 10 Day Avg. Volume: 23,734
• 30 Day Avg. Volume: 239,105
• PEG Ratio: -2.09
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 5.05
• P/FCF Ratio: -366.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹25.00 ▲(2.08% Upside)

Fineotex Chemical Limited's strong financial performance is the primary driver of its stock score, supported by stable profitability and growth metrics. Technical analysis suggests a neutral trend with potential bullish momentum. The valuation indicates moderate overvaluation, which slightly tempers the overall score.

Positive Factors

Balance Sheet Strength

Very low leverage and rising shareholders' equity provide durable financial resilience. Low debt reduces refinancing risk and funds volatility, enabling the company to sustain operations, invest in capacity or pursue strategic initiatives without forcing distressed asset sales or dilutive financing.

High Margins and Profitability

Sustained gross margins above 30% and improving net margins indicate durable pricing power and operational efficiency in specialty formulations. This margin profile supports reinvestment, resilience to raw-material swings, and the ability to fund R&D or technical support that strengthens long-term customer stickiness.

Operating Cash Generation

A strong operating cash flow to net income ratio shows the core business converts earnings into cash reliably. Persistent cash generation underpins capital allocation flexibility, funds maintenance capex and working capital needs, and reduces dependence on external financing for steady-state operations.

Negative Factors

Recent Revenue Decline

A roughly 10% recent revenue contraction signals risk to scale and pricing leverage in the near term. Given the volume- and mix-driven model tied to textile throughput, sustained revenue declines would erode fixed-cost absorption, weaken unit economics, and limit reinvestment capacity over months.

EPS Contraction

A more than 20% fall in EPS points to deteriorating per-share profitability or one-off impacts that have reduced retained earnings. Persisting EPS weakness can constrain internal funding for growth, pressure dividend policy, and signal margin or volume challenges that are structurally important for long-term returns.

Free Cash Flow and Liquidity Pressure

Declining free cash flow driven by elevated capex and lower cash reserves raises liquidity risk if investments continue. This structural pressure can force trade-offs between growth capex, working capital, and shareholder returns, potentially requiring external financing or slowing strategic investments over several quarters.

Fineotex Chemical Limited Business Overview & Revenue Model

Company Description

Fineotex Chemical Limited manufactures and sells textile chemicals, and auxiliary and specialty chemicals in India and internationally. The company provides specialty textile chemicals for pretreatment, dyeing, printing, and finishing processes; water treatment chemicals, paper adhesives, and defoamers; various chemicals, such as benzalkonium chloride (BKC), barite, hematite, magnesium chloride, and calcium chloride; water-based drilling fluid chemicals, including clay/shale inhibitors, lubricants, specialty chemicals, spotting fluids, and loss circulation additives, as well as oil-based drilling fluid chemicals. It also offers cleaning, and hygiene products comprising liquid detergents, surface and hand disinfectants, sanitizing tablets, hand sanitizers and wash liquids, multi surface disinfectant liquids, and air fresheners; and white phenyl and detergent cakes. The company's products are used in textile, home care, hygiene, mining, garment, water treatment, leather, construction, paint, agrochemicals, and adhesives sectors. Fineotex Chemical Limited was founded in 1979 and is headquartered in Mumbai, India.

How the Company Makes Money

Fineotex Chemical Limited generates revenue through the production and sale of its specialty chemical products to various sectors, primarily focusing on textiles, detergents, and leather processing. The company's revenue model is built on direct sales to manufacturers and distributors who require high-quality chemical solutions. Key revenue streams include the sale of textile auxiliaries, surfactants, and other related chemicals, which are essential for enhancing the performance of textiles and materials. FCL also benefits from strategic partnerships with international clients and suppliers, enabling it to expand its market reach and enhance its product offerings. The company's focus on research and development fosters innovation in its product lines, contributing to customer loyalty and repeat business. Additionally, its commitment to sustainability and eco-friendly products attracts environmentally conscious consumers and businesses, further bolstering its revenue potential.

Fineotex Chemical Limited Financial Statement Overview

Summary

Fineotex Chemical Limited exhibits strong financial health with robust revenue growth, solid profitability, and a stable balance sheet characterized by low leverage. However, recent fluctuations in cash flow due to increased capital expenditures suggest a need for careful cash management.

Income Statement

Fineotex Chemical Limited has demonstrated robust revenue growth with a significant increase from 2020 to 2025. The company maintained a strong gross profit margin, consistently above 30%, and an improving net profit margin, indicating efficient cost management. Despite a slight dip in revenue in the latest year, the overall performance showcases resilience and profitability, making the income statement solid.

Balance Sheet

The balance sheet of Fineotex Chemical Limited reflects a healthy financial position with low debt levels and a growing stockholders' equity, resulting in a very low debt-to-equity ratio. The equity ratio remains strong, highlighting financial stability. However, the lower cash reserves in the latest year could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis shows variability, with a recent decline in free cash flow due to increased capital expenditures. The operating cash flow to net income ratio indicates strong cash generation capabilities, although the fluctuation in free cash flow suggests potential liquidity challenges if investment activities continue to rise.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.29B	5.33B	5.69B	5.17B	3.67B	2.17B
Gross Profit	1.97B	2.06B	2.17B	1.78B	1.30B	757.73M
EBITDA	1.46B	1.52B	1.65B	1.13B	767.24M	580.62M
Net Income	1.04B	1.08B	1.20B	883.16M	551.74M	425.88M
Balance Sheet
Total Assets	0.00	8.15B	5.48B	4.22B	3.39B	2.67B
Cash, Cash Equivalents and Short-Term Investments	416.97M	330.01M	735.06M	611.90M	308.35M	279.33M
Total Debt	0.00	2.17M	51.90M	72.80M	19.08M	34.76M
Total Liabilities	-7.39B	757.59M	945.90M	659.02M	700.96M	509.90M
Stockholders Equity	7.39B	7.31B	4.47B	3.49B	2.62B	2.09B
Cash Flow
Free Cash Flow	0.00	-73.46M	494.76M	887.62M	-91.37M	-149.48M
Operating Cash Flow	0.00	693.34M	973.81M	1.08B	133.75M	92.59M
Investing Cash Flow	0.00	-2.73B	-468.50M	-1.03B	-7.44M	-65.32M
Financing Cash Flow	0.00	1.76B	-239.11M	-64.39M	-56.59M	-44.42M

Fineotex Chemical Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FCL, the sentiment is Negative. The current price of 24.49 is above the 20-day moving average (MA) of 22.77, above the 50-day MA of 23.83, and below the 200-day MA of 24.88, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:FCL.

Fineotex Chemical Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.62B	26.12	―	0.65%	-10.12%	-22.38%
MANINDS	64 Neutral	₹24.50B	13.15	―	―	10.26%	46.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RAMRAT	60 Neutral	₹27.58B	38.36	―	0.39%	19.75%	13.42%
KIRIINDUS	60 Neutral	₹27.88B	21.24	―	―	-22.04%	-58.81%
MOL	45 Neutral	₹15.28B	37.69	―	―	―	―
TIRUMALCHM	41 Neutral	₹22.61B	-13.23	―	0.43%	-11.11%	-340.74%

Fineotex Chemical Limited Corporate Events

Fineotex Chemical Files SEBI Demat Compliance Certificate for December 2025 Quarter

Fineotex Chemical Limited has submitted to the stock exchanges a compliance certificate from its registrar and share transfer agent, Bigshare Services Pvt. Ltd., confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate states that all securities received for dematerialisation during the quarter were duly verified, either accepted or rejected, appropriately mutilated and cancelled where required, and that the depositories were recorded as the registered owners within the prescribed 15-day timeline, underscoring the company’s ongoing compliance with regulatory requirements in handling its listed securities.

Fineotex Chemical Limited Acquires U.S. Specialty Oilfield Chemicals Group

Fineotex Chemical Limited announced a strategic acquisition of CrudeChem Technologies, a leading U.S. specialty oilfield chemicals group. This move is expected to enhance Fineotex’s market positioning in the oilfield chemicals sector, potentially expanding its global footprint and offering new growth opportunities for stakeholders.

Fineotex Chemical Expands with U.S. Oilfield Chemicals Acquisition

Fineotex Chemical Limited announced the availability of an audio recording from an investor and analyst call discussing its recent acquisition of a leading U.S. specialty oilfield chemicals group. This strategic move is expected to enhance Fineotex’s market position in the specialty chemicals sector, particularly in the oilfield segment, potentially offering new growth opportunities and strengthening its international presence.

Fineotex Chemical Limited Strengthens Growth Prospects with Successful Warrant Exercise

Fineotex Chemical Limited has successfully exercised warrants on a preferential basis, with significant participation from its promoter group, indicating strong confidence in the company’s growth prospects. The funds raised will be used for working capital and potential acquisitions, bolstering Fineotex’s expansion plans and reinforcing its market position both domestically and internationally.

Fineotex Chemical Expands Capital Through Warrant Conversion

Fineotex Chemical Limited has announced the allotment of 13,750,000 equity shares following the conversion of warrants, as approved in their recent board meeting. This move, conducted on a preferential basis, increases the company’s issued and paid-up capital to Rs. 115,95,00,900, reflecting strategic financial maneuvering to strengthen its market position and shareholder value.

Fineotex Chemical Limited Schedules Earnings Conference Call for Q2 FY2025-26

Fineotex Chemical Limited has announced an upcoming earnings conference call scheduled for November 18, 2025, to discuss its operational and financial performance for the second quarter and first half of the fiscal year 2025-26. This call will provide insights into the company’s performance and strategic direction, potentially impacting investor confidence and market positioning.