Penny stock under Rs 5: This micro-cap company reports a 340 jump in net profit after joint venture with IGL worth Rs 110 crore!

The stock’s 52-week high is Rs 5.54 and its 52-week low is Rs 2.66.

Vikas Lifecare Ltd, a leading trader and manufacturer of polymer, rubber compounds and additives for plastics, synthetic & natural rubber, infra, agro products, FMCG products, etc; announced its Quarterly Results ended June 30, 2023. Details below:

Financial Highlights for the Q1FY24: 

• Net sales stood at Rs 98.89 crore, up 6.48 per cent compared to Q1FY23. 
• Profit before tax stood at Rs 12.92 crore, up 420.50 per cent compared to Q1FY23.  
• Profit After Tax of Rs 11.70 crore, up 340 per cent compared to Q1FY23.  
• The EPS for Q1FY24 is Rs 0.08.

Earlier, Genesis Gas Solutions Ltd, a subsidiary of Vikas Lifecare Ltd entered into joint venture agreement with Indraprastha Gas Limited (IGL) to set up an integrated smart meter manufacturing plant with a capital expenditure of Rs 1,100 million (Rs 110 crore).

In the joint venture, IGL will possess a majority stake of 51 per cent, responsible for manufacturing gas meters, fully manufactured gas meters, as well as selling, distributing, and supplying gas meters, handheld units (HU), and/or data concentration units (DCU). Genesis Gas Solutions Private Limited (Genesis) will own the remaining 49 per cent ownership in the venture.

On Friday, shares of Vikas Lifecare plunged 1.89 per cent to Rs 3.11 per share from its previous closing of Rs 3.17. The stock’s 52-week high is Rs 5.54 and its 52-week low is Rs 2.66.

The company has a market cap of Rs 446.89 crore. Additionally, the company has very little debt, with only Rs 30.4 crore outstanding. This is just 6.80 per cent of its current market capitalization, which means that the company is essentially debt-free. Investors should keep an eye on this micro-cap stock.

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