Fine Organic share price has now been dropped by 3% after the announcement of Quarter 2. Motilal Oswal has now downgraded the stock. To know why you have to read the entire article. as per the reports given by Fine Organic total of 49% of decline has been seen in consolidated net profit for Q2FY24. On 31st October 2023, Tuesday, Fine Organic’s share price declined by 3% in the early trade on the Bombay Stock Exchange (BSE). It has been appended after the company reported about the September 2023 quarter scorecard. Now to know everything regarding this topic, read this article till the end without missing anything.
Fine Organic share price
The Fine Organic share price has faced a decline of 3% in the early trade of 31st October 2023, Tuesday on the Bombay Stock Exchange (BSE). The company’s share price has faced a decline after the company reported its September quarter scorecard. According to the reports, the stock opened at Rs. 4,485.05 against the last close of Rs. 4,591.05 and then it fell by 2.85% to the level of Rs. 4,460. At 9:20 am the stock of the company traded at 2.31% lower at Rs. 4,485. On 30th October 2023, Monday which means yesterday the company reported a 49% YoY decline in the consolidated net profit at Rs. 103.37 for the Q2FY24. Fine Organic Industries net profit in the same quarter 2022 was Rs. 202.63 crore.
As per the source, the revenue from operations for the quarter stood at Rs. 540.49 crore down by 41.2% year on year from Rs. 919.17 crore in the 2022 same quarter. In the last year, the company has given a very poor performance. In the last year, the stock of the company is down by 22% whereas on the other hand, the equity benchmark Sensex is up to 6% in the same period. Reports have shown that the brokerage firm highlighted that Fine Organics has an EBITDA of Rs. 100 crore in the Q2FY24. The margin of the EBITDA is contracted by 370 bps YoY to 22.1%. Where the gross margin has been improved by 370 bps YoY to 41.9% it is because of the sharp decline in raw material costs.
On this Motilal Oswal has said, the decline input cost scenario, the company has now to pass in the benefits of the same to the customers. Motilal Oswal is expecting the margin to contract in the upcoming quarter. They have also said that the long-term prospects of Fine Organic have remained robust as it is in the Oleochemical space. This is primarily driven by R & D innovations from the past many years.