Ashish Kacholia portfolio stock Fineotex Chemical in focus as promoter raises stake. Do you own?

Fineotex Chemical, a specialty chemicals manufacturer backed by ace investor Ashish Kacholia, has been in the spotlight following multiple stake purchases by its promoters. The buying activity comes despite the small-cap stock falling 38 per cent over the past year, showing investor confidence in the company. In the last five years, the stock has delivered multibagger gains.

Promoter Buys Additional Shares

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

Earlier this month, another promoter, Sanjay Tibrewala, purchased 20,000 shares of Fineotex Chemical worth ₹41.31 lakh through open market deals on March 6, 2025. With this acquisition, Tibrewala’s shareholding increased from 34,34,900 shares to 34,54,900 shares, raising his stake slightly from 3 per cent to 3.02 per cent.

As per the shareholding pattern reported in December 2024, the Promoter & Promoter Group collectively held 7,20,25,027 equity shares, accounting for 62.86 per cent of the company’s total shareholding. The remaining 37.14 per cent was owned by public shareholders.

Ashish Kacholia’s Stake in Fineotex Chemical

Veteran investor Ashish Kacholia holds a significant stake in Fineotex Chemical. According to the December 2024 shareholding data, Kacholia owned 31,35,568 equity shares, representing a 2.7 per cent stake in the company. His holding is valued at approximately ₹72.1 crore.

Stock Performance

Despite the recent promoter buying activity, Fineotex Chemical's stock has struggled over the past year, losing 38 per cent of its value. In March 2025, the stock remained largely flat, rising just 0.6 per cent after enduring five consecutive months of losses.

The stock dropped nearly 30 per cent in February, 1.6 per cent in January, 6.2 per cent in December, 6 per cent in November, and 7.6 per cent in October.

However, on a longer-term basis, Fineotex Chemical has been a multibagger stock, delivering over 1,400 percent returns in the last five years.

Weak Q3FY25 and Nine-Month Financial Results

Fineotex Chemical's recent financial performance has also been weak. In Q3FY25, the company’s net sales declined by 9 per cent year-on-year (YoY) to ₹125.92 crore, while its net profit fell by 15 per cent to ₹27.63 crore.

For the nine months ended December 2024 (9MFY25), the company reported a 1 per cent decline in net sales to ₹413.55 crore. Its net profit decreased by 2 per cent to ₹89.08 crore compared to the corresponding period in the previous fiscal year.

Fineotex Chemical has garnered attention with increased promoter buying, but the stock continues to face selling pressure, falling 38 per cent over the past year. While the company’s long-term performance remains impressive, delivering multibagger gains, its recent financials indicate weakness in both sales and profits. Meanwhile, the growing promoter stake and Ashish Kacholia’s substantial holding signal confidence in the company’s long-term prospects.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.