Penny stock under Rs 5 in green after the company slashes debt by 74 per cent in less than 2 years - Marking significant financial turnaround!

The stock is up by 45 per cent from its 52-week low of Rs 2.38 per share.

Vikas Ecotech Limited announced that the company re-paid another Rs 12.3 crore to the bankers as part of its pre-defined debt reduction programme. The company whilst sprinting towards the targeted debt reduction numbers, initiated the process in August-September 2021 and since then the Company has re-paid a total of Rs 118.7 crore to the bankers; thus, reducing the total bank debt from the peak of Rs 161.2 crore approx. to about Rs 4.25 crore currently, making a 74 per cent (approx.) reduction from the peak level.

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 February 15, 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.

Vikas Ecotech is on track to achieve a significant revenue milestone of nearly Rs 100 crore from its Specialty Polymer Compounds business vertical in the current financial year. This impressive growth is fuelled by new, enhanced grades of speciality compounds developed by the company's dedicated technical team. These custom-engineered compounds offer superior performance and value, providing a significant advantage to end users.

Moreover, Vikas Ecotech is poised for further expansion with its recent acquisition of a plasticizer manufacturing business. This acquisition, valued at Rs 27 crore, is expected to generate additional annual revenue of over Rs 200 crore, further propelling the company towards its target of Rs 150 crore revenue for the year. With a strong order book and a strategically aligned acquisition, Vikas Ecotech is well-positioned for continued success in the speciality polymer compounds and chemicals market.

Today, shares of VEL gained 2.68 per cent to Rs 3.45 per share from its previous closing of Rs 3.36 per share. The stock’s 52-week high is Rs 5.09 and its 52-week low is Rs 2.38. The stock is up by 45 per cent from its 52-week low of Rs 2.38 per share.

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