Multibagger penny stock under Rs 5: This micro-cap company receives orders worth Rs 20 crore!
The net sales increased by 61.20 per cent to Rs 403 crore and net profit skyrocketed by 900 per cent to Rs 10 in FY23 compared to FY22
Vikas Ecotech Limited shared business updates from the speciality polymer-rubber compounds and speciality chemical additives business divisions. The Company had bagged fresh orders valued well over Rs 200 million (Rs 20 crore). While The company's speciality compounds and chemicals business has grown over 30 per cent on a year-on-year basis for the last 3 years post the Covid-19 Crisis, the team has been relentlessly working towards growing as well as broad-basing the customer base.
The company has been proudly successful in roping in many of the renowned names added to the customer profile including Olectra Greentech Limited, Polycab India Limited, DCW Limited, Khadim India Limited, Paragon Footwears and many more industry-leading names in the respective product segments.
Additionally, the company has ventured into the arena of Green-Enviro-friendly Infrastructure Development Projects in collaboration with Nice Apartment Constructions Pvt Ltd. The estimated Project Cost of targeted projects is about Rs 115 crore including land cost and construction cost.
The company’s repayment of debt in order to move ahead on its plans to become a debt-free entity in the ongoing financial year. As a part of its defined debt-reduction program, it has further repaid bank debts by Rs 7.30 crore, taking the total amount of bank debt reduced to Rs 71.8 crore and the overall bank-debt reduction to Rs 98.2 crore approx. from the peak level of about Rs 170 crore, till date.
DSIJ offers a service 'Micro Marvel' with recommendations for micro-cap stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the service details pdf here
Vikas Ecotech Limited is primarily engaged in the business of manufacturing speciality chemicals focused on additives and speciality polymer compounds.
According to the financials, Vikas EcoTech has a market cap of Rs 345 crore. The company reported excellent numbers in its Quarterly Results and annual results. The net sales increased by 61.20 per cent to Rs 403 crore and net profit skyrocketed by 900 per cent to Rs 10 in FY23 compared to FY22. The shares of the company saw a spurt in volume by more than 1.50 times on BSE.
On Monday, shares of Vikas Ecotech plunged 0.64 per cent to Rs 3.10 per share from its previous closing of Rs 3.12 with a day’s high of Rs 3.21 and a day’s low of Rs 3.08. The stock gave multibagger returns of over 100 per cent in just 2 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.