Fineotex Chemical rises after board OKs share buyback

Fineotex Chemical rose 3.62% to Rs 31.50 after the company on Monday (27 July) said its board approved a proposal to buyback shares worth up to Rs 4.40 crore at a price not exceeding Rs 40 per share.

At the maximum buyback price and the maximum buyback size, the indicative maximum number of equity shares bought back would be 11 lakh equity shares, comprising approximately 0.99% of the total paid-up equity share capital of the company, as of 31 March 2019.

As on 24 July 2020, the promoters and promoter group held 71.42% stake in the company. The announcement was made before market hours today, 28 July 2020.

On the technical front, the stock's RSI (relative strength index) stood at 59.024. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 27.82 and its 200-day moving average (DMA) placed at 25.79.

The chemical manufacturer's consolidated net profit jumped 42.6% to Rs 8.20 crore on a 38.8% drop in net sales to Rs 30.39 crore in Q1 June 2020 over Q1 June 2019.

Fineotex Chemical is engaged in the business of manufacturing and trading of chemicals.

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