Multibagger penny stock under Rs 5: This micro-cap company announces debt reduction programme; target to become debt free in FY24!
The net sales increased by 61.20 per cent to Rs 403 crore and net profit skyrocketed by 900 per cent to Rs 10 in FY23 compared to FY22.
Vikas EcoTech has announced the repayment of debt in order to move ahead on its plans to become a debt-free entity in the ongoing financial year. As a part of its defined debt-reduction program, it has further repaid bank debts by Rs 7.30 crore, taking the total amount of bank debt reduced to Rs 71.8 crore and the overall bank-debt reduction to Rs 98.2 crore approx. from the peak level of about Rs 170 crore, till date.
Recently, the company shared business updates from its polymer compounds division, which bagged fresh orders for speciality compounds valued at around Rs 9 crore. The speciality compound sales registered so far during Q1 of the current fiscal is Rs 19.70 crore and the target for the current quarter is Rs 28.5 crore which is about 9 per cent higher compared to QoQ Basis with the last FY.
Additionally, the company has ventured into the arena of Green-Enviro-friendly Infrastructure Development Projects in collaboration with Nice Apartment Constructions Pvt Ltd. The estimated Project Cost of targeted projects is about Rs 115 crore including land cost and construction cost.
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Vikas Ecotech Limited is primarily engaged in the business of manufacturing speciality chemicals focused on additives and speciality polymer compounds.
According to the financials, Vikas EcoTech has a market cap of Rs 377 crore. The company reported excellent numbers in its Quarterly Results and annual results. The net sales increased by 61.20 per cent to Rs 403 crore and net profit skyrocketed by 900 per cent to Rs 10 in FY23 compared to FY22
On Monday, shares of Vikas Ecotech plunged 2.62 per cent to Rs 3.34 per share from its previous closing of Rs 3.43 with a day’s high of Rs 3.46 and a day’s low of Rs 3.21. The stock gave multibagger returns of over 400 per cent in just 3 years. Investors should keep an eye on micro-cap stock.