Penny stock below Rs 5: This micro-cap company bags new orders worth Rs 22,50,00,000 from various clients; Eyeing massive revenue in FY24 – Check details inside!

The stock is down by 7 per cent in 1 year while in 2 years the stock is up by 55 per cent.

Vikas Ecotech Limited informed that the company has received orders worth about Rs 22,50,00,000 from various clients for speciality polymer compounds. These orders will be serviced within the next 30-45 days wiz latest by 15 February 2023. The clients are Alert India, Capstan Rubber, Polycab India Limited, International Switchgears Pvt Ltd, Dexter Chem, Arvind Limited, Omega Polymicrons, Relaxo Footwear, Narmada Polymers, KEI Industries Ltd, RMC Switchgears Ltd, Chand Engineering, Tej Shoe Tech and Raghav Lifestyle.

The company will achieve almost Rs 100 crore revenue contribution with these orders from the speciality polymer compounds business vertical in the current fiscal so far and is eyeing another bout of order inflow tapping into the upcoming seasonal exports period during January & March 2024.

Vikas Ecotech's technical team has devoted significant time and effort to developing new, enhanced grades of speciality compounds. These custom-tailored grades offer superior efficacy and cost-performance, providing maximum benefit to end users. The team's relentless efforts have resulted in successfully developing and testing several new grades, some of which have even received patents. This technical edge is key to achieving the company's targeted Rs 150 crore revenue goal for the current financial year.

Intending to expand its speciality polymer compounds and chemicals business, Vikas Ecotech recently acquired a plasticizer manufacturing business for an estimated enterprise value of Rs 27 crore. This all-cash deal is expected to bring in additional revenue of over Rs 200 crore annually in the first year alone. The company has solidified this acquisition by signing a definitive Share Purchase Agreement with the current shareholders of the Plasticizer Manufacturing Business. The product range of the acquired business aligns seamlessly with and augments the company's existing product portfolio.

The company allocated 10,00,00,000 fully convertible warrants to the Promoter and Managing Director of the Company (Vikas Garg), with the conversion of 3,00,00,000 warrants into Equity upon the receipt of 75 per cent of the issue price per warrant, amounting to Rs 7,65,00,000, the Board of Directors. During this meeting, the Board approved the allotment and conversion of 3,50,00,000 warrants into 3,50,00,000 Equity shares at a face value of Rs 1 each.

Today, shares of VEL plunged 1.20 per cent to Rs 3.30 per share with an intraday high of Rs 3.34 and an intraday low of Rs 3.21. The stock’s 52-week high is Rs 5.09 and its 52-week low is Rs 2.38. The stock is down by 7 per cent in 1 year while in 2 years the stock is up by 55 per cent. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.