Ashish Kacholia’s Portfolio Penny Stock: FCL Announces Strategic U.S. Acquisition; Details Inside!

Fineotex Chemical Limited (FCL), a leading Indian multinational specialty performance chemical manufacturer, has made a major move for global expansion by acquiring the CrudeChem Technologies Group (CCT), a U.S.-based specialty chemical company. This acquisition, conducted through FCL's subsidiary, is a significant step towards achieving technological leadership in high-performance and sustainable chemical solutions. CCT is well-established in the global oil and gas sector, focusing on advanced chemical fluid additives and oilfield chemical solutions. CCT, founded by three industry veterans over a decade ago, maintains strong customer relationships, operates a world-class technical laboratory in Texas, and has facilities in Midland and Brookshire, strategically positioning FCL to capitalise on the burgeoning North American market, which is projected to reach $11.5 billion in key segments like refining and water treatment in 2025.

CCT's primary attraction is its leadership in environmentally responsible oilfield chemistry, aligning perfectly with the evolving energy industry's focus on efficient, cost-effective, and ESG-compliant solutions. The acquisition of CCT's advanced expertise and U.S. operational base will be transformative for Fineotex. By integrating CCT’s robust scientific depth and operational strength, FCL can immediately participate and grow meaningfully in a rapidly expanding global opportunity, significantly boosting its presence in the high-performance and specialty chemical domain worldwide. An audio recording of the Investor/Analyst Call regarding this acquisition was made available on FCL's website on December 10, 2025.

About the Company

Fineotex Chemical Limited is a leading Indian multinational producer of specialty performance chemicals, offering sustainable, technology-driven solutions for industries such as textile and garment processing, home care, water treatment and oil & gas. With advanced manufacturing facilities in Ambernath (India) and Selangor (Malaysia) and a new plant planned for Ambernath, Fineotex is committed to innovation and sustainability. The company serves clients in approximately 70 countries through an extensive network of over 103 dealers and distributors in India, supported by an NABL-accredited R&D laboratory. Fineotex consistently delivers innovative, reliable and eco-friendly solutions to meet global market demands.

Fineotex Chemical delivered a strong quarterly performance, seeing consolidated total income rise 15 per cent quarter-on-quarter to Rs 146.22 crore, fuelled by solid results in its textile chemicals and oil & gas segments. This operational efficiency was evident with an 18 per cent increase in EBITDA to Rs 25.20 crore and a 24 per cent jump in net profit to Rs 25.03 crore, alongside the successful completion and commissioning of a new Rs 60 crore manufacturing facility that adds 15,000 MTPA capacity. However, the company's full fiscal year 2025 results showed a decline compared to FY24, with net sales dropping to Rs 533 crore from Rs 569 crore and net profit decreasing to Rs 109 crore from Rs 121 crore.

The company has a market cap of over Rs 2,800 crore with an ROE of 18 per cent and an ROCE of 24 per cent. The stock is up by 29.6 per cent from its 52-week low of Rs 19.21 per share and has given multibagger returns of 390 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.