FIIs Bought 41,25,030 Shares: Penny Stock Under Rs 5 Jumps After Announcing Establishment of New Manufacturing Facility Under Rajasthan Investment Promotion Scheme
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
On Thursday, shares of Vikas Lifecare Limited jumped 3.52 per cent to an intraday high of Rs 4.40 per share from its intraday low of Rs 4.25 per share. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 4.05. The shares of the company saw a spurt in volume by more than 1.60 times on BSE.
Vikas Lifecare Limited is pleased to announce the establishment of a new, state-of-the-art manufacturing facility in the Shahjahanpur RIICO Industrial Area, spanning 20,000 square feet, under the Rajasthan Investment Promotion Scheme (RIPS). Scheduled to commence operations in December 2024, this facility will specialize in manufacturing advanced commodity compounds, including EVA, ATH, Thermoplastic Rubber, and Thermoplastic Elastomer. This strategic initiative reaffirms the Company’s commitment to leveraging RIPS incentives for driving profitability and fostering regional development.
Through RIPS, the Government of Rajasthan offers several fiscal benefits, including a 9 per cent SGST refund on products manufactured and sold within the state. Additional advantages include subsidies linked to employment generation, exemptions or deferments on duties such as electricity duty and land tax, and potential capital investment and interest subsidies. With a production capacity of 5,000 MTPA, the facility is expected to generate additional annual revenue of Rs 400-500 million, significantly contributing to the Company’s profitability and growth trajectory while strengthening its competitive position in the market.
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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 808 crore. Investors should keep this penny stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.