Penny stock below Rs 10: This small-cap company bags new order worth Rs 49,50,00,000 from Gujarat Gas Ltd!

The stock is up by 85 per cent in just 6 months.

Vikas Lifecare Limited informed that its material subsidiary Genesis Gas Solutions (Genesis) has been awarded orders to supply 40,000 gas meters valued at an aggregate of Rs 49,50,00,000 from Gujarat Gas Limited, India’s Largest City Gas Distribution company. Vikas Lifecare Ltd. owns 95 per cent equity in Genesis which is engaged in the business of developing “Smart Products” including smart gas meters & power distribution solutions for the infrastructure segment.
Genesis is a company founded in 2017 that specializes in smart gas and water metering in India. The company has a 20 per cent share of the domestic gas metering market and supplies gas meters to various CGDs in India. Genesis has also developed India’s first Meter Data Management (MDM) and Head-end system for Gas Utilities which run more than 1,50,000 smart meters in India.

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. According to the Quarterly Results, the company's net sales decreased by 12 per cent to Rs 116.03 crore and net profit skyrocketed by 206 per cent to Rs 7.65 crore in Q2FY24, compared to Q2FY23. In H1FY24, net sales decreased by 4.05 per cent to Rs 214.93 crore and net profit skyrocketed by 278.02 per cent to Rs 19.35 crore in H1FY24, compared to H1FY23.

In FY23, the net sales increased by 58.2 per cent to Rs 476.05 crore compared to FY22 while the company reported a net loss of Rs 15.55 crore in FY23 compared to a net profit of Rs 28.92 crore in FY22. This micro-cap company has a market capitalization of Rs 730 crore and very little debt. The company has only Rs 25.5 crore in outstanding debt, which is just 3.5 per cent of its current market capitalization.

On Friday, shares of Vikas Lifecare plunged 0.78 per cent to Rs 5.08 per share from its previous closing of Rs 5.12 with an intraday high of Rs 5.17 and an intraday low of Rs 5.07. The stock is up by 85 per cent in just 6 months. Investors should keep an eye on this micro-cap stock.

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