Multibagger stock under Rs 5: This micro-cap company receives project worth Rs 1,150 million!

The stock gave multibagger returns of 155 per cent in just 2 years. 

Vikas Ecotech informed that the company has ventured into the arena of Green-Enviro-friendly Infrastructure Development Projects in collaboration with Nice Apartment Constructions 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 70 per cent of the total project cost as the collaborator. The estimated project cost of targeted projects is about Rs 1,150 million, including the cost of lands as well as the costs to be incurred for the construction and development of commercial buildings at three locations in Gurugram, Haryana. 

Additionally, the company has paid back Rs 52.20 million approx., taking the total amount of bank-debt reduced to Rs 791.30 million and the overall bank-debt reduction to Rs 908.70 million till date.  

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On Thursday, shares of Vikas Ecotech zoomed 5.65 per cent to Rs 2.99 per share from its previous closing of Rs 2.83 with a day’s high of Rs 3.10 and a day’s low of Rs 2.88. The stock gave multibagger returns of 155 per cent in just 2 years. 

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 285 crore. The net sales surged by 48 per cent in Q3FY23 over Q3FY22. In FY22, net sales skyrocketed to 115.51 per cent over FY21. The company reported a net profit of Rs 1 crore in FY22 whereas it reported a net loss of Rs 14 crore in FY21.  

Investors should keep an eye on this micro-cap stock.