Penny Stock Below Rs 5: Company Reports A 67 Per Cent Revenue Surge & A 311 Per Cent Jump In PAT
The stock is up by 9 per cent from its 52-week low of Rs 3.05 per share.
On Thursday, shares of Vikas Ecotech Ltd gained 0.61 per cent to Rs 3.32 per share with an intraday high of Rs 3.36 per share and an intraday low of Rs 3.28 per share from its previous closing of Rs 3.30 per share. The stock’s 52-week high is Rs 5.63 and its 52-week low is Rs 3.05.
Vikas Ecotech, a leading manufacturer of speciality chemicals and polymers in Delhi, caters to a wide range of industries with stabilizers, plasticisers, and other additives. They are a unique player in the global market, being the only Indian manufacturer of organotin (a key stabilizer) with in-house R&D, and are constantly expanding through acquisitions, like a recent plasticizer business and a steel company for infrastructure projects. Vikas Ecotech also includes Vikas Organics, a well-established plasticizer producer with a strong domestic and international presence.
According to Quarterly Results, the net sales increased by 47 per cent to Rs 89.23 crore and net profit increased by 61 per cent to Rs 10.38 crore in Q2FY25 compared to Q2FY24. Looking at the half-yearly results, the net sales increased by 61 per cent to Rs 190.29 crore and net profit increased by 311 per cent to Rs 13.23 crore in H1FY25 compared to H1FY24. In FY24, the company reported net sales of Rs 258.63 crore, operating profit of Rs 19.78 crore and net profit of Rs 6.85 crore compared to net sales of Rs 402.67 crore, operating profit of Rs 24.82 crore and net profit of Rs 9.53 crore in FY23.
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Earlier, Vikas Ecotech Limited (VEL) acquired Shamli Steels through a share swap, issuing 38 million new shares at Rs 4.20 each to Shamli Steels' shareholders. This valued Shamli Steels at Rs 160 crore and made it a wholly-owned VEL subsidiary. Separately, VEL's subsidiary Vikas Organics secured a Rs 165 million export order for vinyl plasticizers, while VEL is upgrading VOPL's facilities to boost production and expand its global market presence.
The company has a market cap of Rs 587 crore. The stock is up by 9 per cent from its 52-week low of Rs 3.05 per share. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.