Rs 60,00,00,000 revenue potential: Multibagger penny stock below Rs 10 skyrocketed 10 per cent as the company expands operations with acquisition of new land!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.70 per share.

Vikas Lifecare Limited (VLL) announced that for the purpose of capacity expansion and augmentation of manufacturing operations for the company’s conventional business of polymer & rubber compounds, the company have acquired a new land piece measuring about 1800 sq. metre adjoining the existing factories located at RIICO Industrial Area, Shahjahanpur, Rajasthan.

The total cost of acquisition and development of the land and the building thereon will be about Rs 3 crore, whereas the equipment for the expansion of production capacity will cost another Rs 23 crore. The new expansion will be ready to be utilized within the next 3 to 4 months and is expected to add an additional Rs 60 crore to the gross revenues from the compounding business segment.

VLL is working in all directions to tap into the vertical as well as horizontal growth options via expanding conventional businesses and venturing into new business segments to fuel the fast-growth plans through various routes including merger and acquisition of going businesses from diverse fields.

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 800 crore and very little debt. The company has only Rs 25.5 crore in outstanding debt, which is just 3.2 per cent of its current market capitalization.

Today, shares of Vikas Lifecare gained 10.67 per cent an intraday high of Rs 5.70 per share from its previous closing of Rs 4.15. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.70 per share. Investors should keep an eye on this micro-cap stock.

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