Penny Stock Under Rs 10 Jumps After Signing Technology Transfer Agreement with Advanced System Laboratory, DRDO for Bio-Degradable Plastics
The company's shares saw a spurt in volume by more than 1.01 times on BSE.
On Monday, shares of Vikas Lifecare Limited jumped 7.50 per cent to an intraday high of Rs 4.59 per share from its intraday low of Rs 4.27 per share. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 4.05. The company's shares saw a spurt in volume by more than 1.01 times on BSE.
Vikas Lifecare Limited (VLL) has partnered with the Defence Research and Development Organisation (DRDO) to commercialize a groundbreaking technology for "Granules for Biodegradable Bags." This collaboration aims to provide a sustainable alternative to conventional single-use polyethene bags.
The biodegradable granule technology offers significant economic advantages by providing a cost-effective solution to traditional plastic bags. This aligns with the growing global demand for eco-friendly packaging solutions. The Indian plastic packaging market is projected to reach USD 25.35 billion by 2029, indicating a significant opportunity for sustainable packaging solutions. Additionally, the use of biodegradable granules can reduce long-term environmental clean-up costs, promoting a circular economy and contributing to India's sustainability goals.
VLL, previously involved in plastic waste recycling, is now taking a proactive step towards sustainable solutions by partnering with DRDO. This collaboration enables VLL to manufacture and market biodegradable granules both domestically and internationally for the next 10 years. By adopting this technology, VLL is addressing environmental concerns and contributing to a more sustainable future. This partnership marks a significant milestone in the global effort to reduce plastic pollution.
Earlier, the company established a new 20,000 sq ft manufacturing facility in Shahjahanpur RIICO Industrial Area, Rajasthan, under the Rajasthan Investment Promotion Scheme (RIPS). This facility, commencing operations in December 2024, will produce advanced commodity compounds like EVA, ATH, Thermoplastic Rubber, and Thermoplastic Elastomer. With a production capacity of 5,000 MTPA, it's expected to generate an additional Rs 400-500 million annual revenue, leveraging RIPS benefits like a 9 per cent SGST refund, employment subsidies, and tax exemptions. This strategic move will bolster the company's profitability and market position.
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About the Company
Vikas Lifecare Limited (VLL) is a diversified company with a strong foothold in polymer and rubber compounds, specialty additives, and smart gas metering solutions. The company is committed to environmental sustainability, upcycling waste materials into valuable products, and fulfilling EPR obligations. VLL's subsidiary, Genesis Gas Solutions, is a leader in smart gas metering, holding a significant market share in India. The recent joint venture with IGL will further strengthen VLL's position in this sector. Beyond its core businesses, VLL has expanded into the B2C segment, offering a range of consumer products in the FMCG, agro, and infrastructure sectors. The company's latest venture into film production demonstrates its ambition to explore new opportunities and create innovative content for global audiences.
According to Quarterly Results, the net sales increased by 46.5 per cent to Rs 134.88 crore in Q2FY25 compared to net sales of Rs 92.09 crore in Q2FY24. The company reported a net profit of Rs 2.15 crore in Q2FY25 compared to a net loss of Rs 2.91 crore in Q2FY24, an increase of 174 per cent. In its annual results, the net sales decreased by 6.4 per cent to Rs 445.75 crore in FY24 compared to net sales of Rs 476.05 crore in FY23. The company reported a net profit of Rs 13.95 crore in FY24 compared to a net loss of Rs 15.55 crore in FY23, an increase of 190 per cent.
In September 2024, FIIs bought 41,25,030 shares and increased their stake to 0.55 per cent compared to 0.28 per cent in June 2024. The company has a market cap of Rs 827 crore. Investors should keep this penny stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.