Stock trading under Rs 5: Don't miss action in smallcap stock aiming to become ‘Zero Debt Company’ by 2024

The Company is an emerging player in the global arena of the high-end speciality chemicals.   

The domestic markets had a great start to the new month. The Nifty index closed above 17,400, near the day's high. Bank Nifty performed even better, surging over 1 per cent and closing near the day's high.  

The broader markets had an impressive performance, with the Nifty Midcap and Small-Cap indices surging 1.55 per cent and 1.34 per cent, respectively. Many stocks were buzzing on D-Street due to the outperformance of the broader markets. Investors were particularly interested in Vikas Ecotech, which has a market capitalization of Rs. 268 crore.   

After hitting a new 52-week low, the stock bounced back and rose nearly 3 per cent on BSE. What caused such a stunning recovery from the lower levels?  

The company released a statement saying that it has paid back Rs. 30 million approx., taking the total amount of bank-debt reduced to Rs. 843 million and the overall bank-debt reduction to Rs. 857 million till date.   

The Company has a goal of becoming a 100 per cent debt free entity within FY 2023-2024 under Debt Reduction Program, on persistence and support extended by the promoters of the Company.   

It may further be noted that post the current Repayment, the Company intends to payback additional Rs. 295 million before the close of this quarter, bringing down the debt levels to Rs 548 million at the end of FY 2022-23, paving the way towards becoming a ‘ZERO Debt Company’ in 2024.  

The Company is an emerging player in the global arena of the high-end speciality chemicals.   

Do you think it would be able to achieve its vision of becoming a ‘Zero Debt Company’?