Penny stock under Rs 5 to keep under the radar as company announces stellar quarterly results (Q1FY25); PAT jumps over 500 per cent!
The stock is up by 54 per cent from its 52-week low of Rs 2.82 per share.
Vikas Ecotech Ltd, a leading manufacturer of specialty 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 75.2 per cent to Rs 101.06 crore, operating profit increased by 201.6 per cent to Rs 15.90 and net profit increased by 569.4 per cent to Rs 10.38 crore in Q1FY25 compared to Q1FY24. 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) has 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.
Today, shares of Vikas Ecotech Ltd gained 14.81 per cent to an intraday high of Rs 4.34 per share from its previous closing of Rs 3.78 with a spurt in volume by more than 2 times on BSE. The company has a market cap of over Rs 700 crore. The stock’s 52-week high is Rs 5.63 and its 52-week low is Rs 2.82. The stock is up by 54 per cent from its 52-week low of Rs 2.82 per share. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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