After Giving 76% Returns This Year, This Chemical Stock Zooms 15% On Four-Fold Rise In Q1fy23 Profit

By CNBCTV18.com Aug 10, 2022, 01:24 PM IST (Published)

Shares of Fine Organic Industries climbed over 15 percent after the chemical additives firm reported strong earnings in the April-June quarter, particularly a four-fold increase in consolidated net profit at Rs 157.28 crore. It had reported Rs 34.9 crore in net profit in the corresponding period last year. Sequentially, the net profit grew 29 percent from Rs 122 crore in the January-March quarter.

Fine Organic’s revenue from operations came in at Rs 748 crore during the quarter under review,  jumping 114 percent from Rs 358 crore in the first quarter of the financial year 2022.

Fine Organic stock price has given outstanding resturns to the investors, gaining over 76 percent in the year so far. With today’s high the stock surpassed its previous high of Rs 6,139 that it had touched on June 2, 2022.

“The changing and diversifying consumer tastes, as well as increasing demand for food and beverages with higher nutritional value, necessitated the use of food additives by food companies are among key opportunities for food additives,” the management said in its annual report 2022.

In addition to conducting business in India and abroad, Fine Organic manufactures, processes, supplies, distributes, deals, imports, and exports a wide variety of oleochemical-based additives used in food, plastics, cosmetics, coatings, and other speciality applications.

Among the fastest-growing sectors in India are speciality chemicals. Several factors are expected to drive speciality chemical segment growth, including shifting global supply and recovering end-user demand. Construction, textile, automotive and consumer durables are among the end-use markets that are growing.

At 12:08 pm, shares of Fine Organic were trading at Rs 6712, a 13.3 percent up from the previous close on the BSE.