Fine Organic Industries Ltd Stock Review

Fine Organic Industries Ltd Stock Review

 

Fine Organic Industries Ltd


Fine Organic Industries Ltd


ABOUT 

Fine Organic Industries is carries on business in India and abroad, as manufacturers, processors, suppliers, distributors, dealers, importers, exporters of wide range of oleochemical-based additives used in foods, plastics, cosmetics, coatings and other specialty application in various industries.

KEY POINTS 


Largest in India and among top 6 global players 

Fine Organic is the largest manufacturer of oleochemical-based niche additives in India. It is among the six largest global players in polymer additives and among leading global players in specialty food emulsifiers.


Diversified customer base 


Fine's client/customer base includes companies like Coca-Cola, Britannia, Asian Paints, Parle, Pidilite, Berger Paints etc. No individual customer accounts for more than 5% of revenue. Fine Organic’s product portfolio comprises of over 400 products including food additives, polymer additives, emollients for cosmetics, additives for rubber & elastomers, etc.


Shift from synthetic chemicals to oleo-chemicals
Demand for oleo-chemicals are increasing as they are green additives and environment friendly .



  • Market Cap₹ 7,762 Cr.
  • Current Price₹ 2,532
  • High / Low₹ 3,260 / 1,825
  • Stock P/E63.2
  • Book Value₹ 219
  • Dividend Yield0.28 %
  • ROCE32.9 %
  • ROE29.4 %
  • Face Value₹ 5.00
  • Industry PE21.3
  • Pledged percentage0.00 %
  • Profit growth-21.8 %
  • Sales growth-1.62 %
  • PEG Ratio
  • Sales growth 5Years%
  • CMP / FCF132
  • Debt to equity0.11
  • Reserves₹ 655 Cr.
  • Profit Var 5Yrs%
  • Free Cash Flow 3Yrs₹ 176 Cr.
  • Price to book value11.6
  • Price to Sales7.34
  • Return on assets23.8 %




PROS

  • Company has reduced debt.
  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 28.93%
  • Company has been maintaining a healthy dividend payout of 17.10%

CONS

  • Stock is trading at 11.59 times its book value





Fine Organic Industries Limited


Our secretarial audit report is to be read along with this letter:



1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to express 
an opinion on these secretarial records based on our audit.


2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness 
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in 
Secretarial records. We believe that the process and practices that followed, provide a reasonable basis for our opinion.


3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.


4. Where ever required, we have discussed & relied on the Management Representation about the Compliance of laws, rules 
and regulations and happening of events, etc.


5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of 
management. Our examination was limited to the verification of procedure on test basis and Management Representations, 
certificate received from the Authorised Officers of the Company & other documents received for applicability of relevant 
acts as well as viewing of the following registrations under:
• The Environment (Protection) Act
• Water (Prevention & Control of Pollution) Act
• Air (Prevention & Control of Pollution) Act


6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness 
with which the management has conducted the affairs of the Company.




Diversified Product Portfolio


Our consistent innovation and an unwavering focus on 
core competencies enable us to develop a unique range 
of specialty additives for a wide variety of applications.



Foods


We have pioneered the manufacturing and marketing 
of food emulsifiers in India. We have also expanded 
our range to anti-fungal agents, bread improvers and 
beverage clouding agents, among others.


Plastics

We develop a diverse range of Oleo-chemistry based 
additives for PVC, Polyolefins, Styrenics, Polyamides & 
other Engineering Polymers, Rubbers and Elastomers.



Other Specialties

Our product range for CosPha applications serve as 

the base ingredients in formulations. They enhance 
appearance and use for end-users in cosmetic and 
healthcare products like creams, lotions and ointments 
among others. 
Our Oleo-chemical proficiency has helped us develop a 
line of functional additives and special formulations that 
find applications in various types of coatings and various 
other applications like Feed Nutrition, Bitumen etc.



Vision

To become a preferred supplier of 
Oleo-chemical derivatives globally

Mission

To use our expertise in Oleo-chemistry 
and build a compelling portfolio of 
specialty additives and ingredients
To build a state-of-the-art infrastructure for 
research and manufacturing
To develop a lean, empowered team that 
is aligned with the organisation’s core 
values







4.88

Post a Comment

0 Comments