Fine Organic Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹5,455.00+₹52.50 (+0.97%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Fine Organic Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fine Organic Industries Limited engages in manufacture, processing, supply, distribution, dealing, import, and export of oleochemical-based additives in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees938

Annual revenue₹2,346 Cr

How does it make money?

Turns over ₹2,346 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 938 employees supports ₹2.50 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin25.4%

Net margin17.8%

Revenue / employee₹2.50 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 20.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE20.0%

ROE15.7%

Peer median ROE22.3%

What is the outlook?

10 analysts covering the stock expect revenue to grow about 9.6% and earnings to grow about 2.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.6%

Est. earnings growth+2.3%

Analysts10

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -23% while net margin moved -13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-23%

Margin effect-13%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.2% a year
✗ Profit has declined at 12.3% a year

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.7x

3Y Median

33.2x

40 monthly readings · mean 31.4x · range 20.0x–40.1x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 17% above its 3y median of 33.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 40.4x.

vs. its own history

Fair

33.2x median over 40 months · +17%

vs. sector peers

Fair

40.4x median of 4 peers · -4%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.7x

P/B

6.28x

EV/EBITDA

27.8x

PEG

2.15

Dividend Yield

0.20%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 29.4% to 25.4% over 3 years.
Debt is rising
Total debt is up 139% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 40.1% to 15.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 54.7% to 20.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 139% over 3 years, from ₹29 Cr to ₹68 Cr.
🔴High leverageFinancial
Debt/Equity of 3.46x — earnings must service borrowings before shareholders see anything.
🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 29.4% to 25.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.46x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 40.1% to 15.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 23%✓ 25.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹288 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 17%✓ 20.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 33.2x✓ 38.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹16,725 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.7x

Fair

Fairly valued against the generic band

P/B Ratio

6.28x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹140.89

Profitable

Profitable on a per-share basis

ROE

15.7%

Strong

Strong capital efficiency

ROCE

20.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.46x

High

High leverage

Revenue Growth (YoY)

18.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹288 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹5,455

P/E (Forward)

35.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

23.4%

Good

Healthy core-business profitability

Net Margin

17.7%

Good

Strong bottom-line conversion

Current Ratio

8.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

5286.8 / 5213.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,029 Cr	₹2,123 Cr	₹2,260 Cr	₹2,346 Cr	-8.2%
EBITDA	₹891 Cr	₹602 Cr	₹607 Cr	₹597 Cr	-12.5%
EBITDA Margin	29.4%	28.4%	26.9%	25.4%	—
PAT (Net Profit)	₹618 Cr	₹412 Cr	₹410 Cr	₹417 Cr	-12.3%
EPS	₹201.6	₹134.34	₹133.89	₹136.03	-12.3%
ROE	40.1%	21.4%	17.9%	15.7%	—
ROCE	54.7%	28.3%	24.2%	20.0%	—
Total Debt	₹29 Cr	₹4 Cr	₹3 Cr	₹68 Cr	+33.7%
Free Cash Flow	₹404 Cr	₹548 Cr	₹76 Cr	₹288 Cr	-10.7%

🔴 Revenue has shrunk at 8.2% a year over 3 years.

🔴 EBITDA has shrunk at 12.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 29.4% to 25.4% over 3 years (-4.0 pts).

🔴 PAT (Net Profit) has shrunk at 12.3% a year over 3 years.

🔴 EPS has shrunk at 12.3% a year over 3 years.

🔴 ROE has fallen from 40.1% to 15.7% over 3 years (-24.5 pts).

🔴 ROCE has fallen from 54.7% to 20.0% over 3 years (-34.7 pts).

🔴 Total Debt has grown at 33.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 10.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,999 Cr

Total Liabilities

₹334 Cr

Total Debt

₹68 Cr

Cash & Equivalents

₹188 Cr

Operating Cash Flow

₹430 Cr

Capex

-₹142 Cr

Shareholding (proxy)

Institutional Holding

14.3%

Insider Holding

76.0%

Corporate Actions

Dividend Rate

₹11

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

8 Buy · 0 Hold · 3 Sell

Target Price (Mean)

₹5,392.27

-1.1% vs CMP

Target Range

₹4,007 – ₹6,629

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

4 negative2 general

Fine Organic Industries Limited (FINEORG) Share Price NSE

TechGraph, 07 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Fine Organic Industries Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Simply Wall Street, 12 AugRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Sell Fine Organic Industries; target of Rs 4510: Motilal Oswal

Moneycontrol.com, 11 AugRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Valiant Organics among 5 commodity stocks that hit 52-week highs and rallied up to 48% in a month

The Economic Times, 07 Oct

Top stocks to buy today: Stock recommendations for October 15, 2026 - check list

The Times of India, 15 Oct

Fine Organic Industries Share Price after fresh yearly high

Univest, 06 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.3/20

🟡Financial HealthAdequate12.5/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate9.5/15

🔴ValuationDemanding6.5/15

🟡RiskModerate5.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 23%25.4%
✓Free cash flow remains positive₹288 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 17%20.0%
✓Valuation vs its own median of 33.2x38.7x today