Fine Organics

Sector Analysis

The underlying driving factors for India’s oleo-chemical business are changing lifestyles and increasing discretionary income. The Oleo-chemicals industry in India is expected to exceed $2.6 billion by 2025. The country’s demand for oleo-chemicals is being driven by strong development in the personal care sector, favourable government regulations, and rising consumerism. The easy availability of raw materials and the increasing demand for green chemicals in India can also be attributed to the continued growth of India’s oleo-chemicals market

Why We Have Invested In Fine Organics:

Raw Material Cost Fluctuation

The main raw materials used by the company are vegetable oils such as rapeseed, palm, palm kernel, sunflower, castor, soybean, and rice bran. Because the business does not enter into supply contracts that last more than six months, it is vulnerable to increases in raw material costs. The desire for biofuel and its consumption decide global vegetable oil prices. values of oleochemical-based additives in basic raw materials, such as vegetable oils, are, however, less volatile when compared to other commodity values.

Geopolitical & Forex Risk:

About 55% of the company’s revenue comes from the foreign market. Additionally, the business transports a sizeable quantity of raw materials from nations like Indonesia, Malaysia, etc. An increase in costs due to the imposition of duties on necessary raw materials may affect the company’s profit margins. For instance, the government of India levied a tariff of 35.75% and 35%, respectively, on the import of crude palm oil and crude soybean. Additionally, changes in exchange prices may have an impact on the company’s margin profile.

Over the last five years, the company has produced good profit growth at a CAGR of 27.2%, and it has a good return on equity (ROE) track record: With a three-year ROE of 26.2%, the company has maintained a solid dividend payout of 17.2%. With over 44 years of experience, the business is well-positioned to capitalise on the industry’s high entry barriers. So, investing in Fine Organics business stocks can result in high returns/profits.

Fine Organics is creating green, ecologically friendly additives as the demand for oleo-chemicals rises daily.

What We Gained:

On 15.7.22, we saw the market around 9:30 a.m., and we took a position for 4961 based on a thorough study and data gathering of Fine organics with its past and present performance, and we saw a tremendous hike during the afternoon trading session. And was waiting to achieve the desired profit target. Despite the fact that the company’s trading pattern was performing well, it displayed a bullish pattern, and volume was quickly rising with the maximum rate of buying and selling. We will now close the position at the goal price of 5051.75. We received excellent returns for our client’s portfolio of Fine Organics due to the high demand for Oleo-chemicals.

By observing the market for a week or two and seeing the bullish pattern and increase in the stock price of Fine Organics, we found the opportunity to book the position on 27.7.22 and we took the position at a trading price of 5129 by continuing the same methodology by following the fundamental analysis, valuation, technical analysis with the deep research and latest news including the market’s current affairs, the resistance and support level by looking into We finished with a windfall of 5182.13.

Conclusion: Before investing in any industry, our analysis team conducts extensive research and prepares a report before hanging by scrutinizing the PE ratio, revenue growth, sales profit, and sales revenue, calculating past returns, and analyzing the stock’s candle pattern for more than a week. We purchase and trade positions at targeted/desired profits by taking a moderate risk.

For us, investing in this industry entailed committing money/capital to an endeavour in the hopes of making a profit for our clients.