Multibagger penny stock under Rs 5: This micro-cap company has ventured into the arena of green-enviro-friendly infrastructure development projects worth Rs 500 million!
From 0.67 per share to Rs 3.32 per share, the stock gave multibagger returns of 395.53 per cent in 16 years.
Vikas Ecotech Limited announced that the company has ventured into the arena of Green-Enviro-friendly Infrastructure Development Projects in collaboration with ARM Estate Projects Pvt Ltd (a company engaged in Real Estate Development of Commercial and Residential Projects in Delhi NCR).
Vikas Ecotech Limited entered a collaboration arrangement wherein the company will be inducing 75 per cent of the total project cost as the collaborator. The estimated project cost of targeted projects is about Rs 500 million, including the cost of lands as well as the costs to be incurred for the construction and development of commercial buildings at 2 locations in Gurugram, Haryana.
Vikas Ecotech Limited has induced Rs 150 million during July 2023 in lieu of the payments accrued towards the land parcels in the ongoing investments in Delhi/NCR, the remaining contribution of Rs 225 million will be induced at appropriate stages in the project development. Vikas Ecotech Limited has been considering similar proposals which complement the existing business and venturing into the infrastructure development segment makes a forward integration for many of its products and materials that the company is currently supplying to the infrastructure development projects as well as certain products and materials that the company will start manufacturing in the near future.
The new venture will generate additional sales of infra products for the company adding to the business volumes, and resultant profitability and on the other hand will lead to broad-basing of business interests for the company.
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Earlier, the company had received orders valued at Rs 200 million approx. (Rs 20 crore) for supplying coal to one of the prestigious cement manufacturers namely Prism Johnson Limited (Cement unit II) promoted by the Rajan Raheja Group. The supplies for this order will start within the next 15 days and will be completed by October 31, 2023.
On Monday, shares of Vikas Ecotech Ltd surged 8.15 per cent to an intraday high of Rs 3.32 per share with a spurt in volume by more than 1.78 times on BSE. From 0.67 per share to Rs 3.32 per share, the stock gave multibagger returns of 395.53 per cent in 16 years.
Investors should keep an eye on micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.