Fine Organic Industries, which was listed exactly one year ago, has given over 80 percent returns to the investors. The stock has gained as much as 82.7 percent from its offer price of Rs 783 to Rs 1,431 per share as on July 1, 2019.
The issue opened on June 20, 2018, and closed on June 22, 2018, with a price band of Rs 780-783 per share. It was subscribed nearly 9 times.
The stock hit its 52-week high of Rs 1,648 on June 3, 2019, up 110 percent from its issue price; and a 52-week low of Rs 735.20 on July 23, 2018. The current market capitalisation of the firm stands at Rs 4,404 crore.
According to Anand Rathi Research, Fine Organics is one of the top-five globally in plastic additives, and sixth in food additives. With its FY20-22 62,000-tonne expansion, its capacity would nearly double from 69,300 tonnes to 131,300 tonnes, it added.
The capex is well timed as the company is operating at 85 percent capacity. Further, the brokerage said that the firm is focusing on increasing sales of higher-margin products and other specialty products such as feed nutrition additives and that the expansion in capacity and product range would drive growth.
About three-fourths of Fine Organics’ revenue comes from plastic additives which are used to improve various functional and processing properties for the plastic, packaging and petrochemical industries. The rest comes from food additives (emulsifiers, preservatives) and other end-user markets such as personal care and feed nutrition.
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First Published: Jul 2, 2019 11:05 AM IST
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