Shares of this polymer manufacturing company surged around 17 percent on Thursday’s trading session after they announced the acquisition of land in Rajasthan. The shares have delivered more than 70 percent to its shareholders in six months.
With a market capitalisation of Rs. 802 crores, the shares of Vikas Lifecare Ltd started Thursday’s trading session on a higher note at Rs. 5.25 compared to its previous close of Rs. 5.15. The shares hit a high of Rs. 6.05, gaining around 17 percent and are currently trading at Rs. 5.65 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had acquired a new land piece measuring about 1,800 Sq. Mtr. adjoining to the existing factories located at RIICO Industrial Area, Shahjahanpur, Rajasthan.
The land was acquired to expand the capacity and augmentation of manufacturing operations for the company’s conventional business of polymer and rubber compounds.
The total cost of acquisition and development of the land and the building thereon will be about Rs. 30 million, whereas the equipment for the expansion of production capacity will cost another Rs. 230 million.
Furthermore, the company mentioned that new expansion will be ready to be utilized within the next 3 to 4 months and is expected to add an additional Rs. 600 million to the gross revenues from the compounding business segment.
Moreover, the company is working in all directions to tap into vertical as well as horizontal growth options by expanding conventional businesses and venturing into new business segments to fuel the fast-growth plans through various routes including mergers and acquisitions of going businesses from diverse fields.
Looking at the company’s financial statements, the revenue increased by 17 percent from Rs. 98.89 crores in the June quarter to Rs. 116.03 crores during the September quarter. On a contrasting note, the net profits declined by 31 percent from Rs. 11.07 crores to Rs. 7.65 crores during the same timeframe.
On February 15th, 2022, the company acquired 30,000 Equity Shares representing 75 percent in Genesis Gas Solutions Private Limited, accordingly, the entity is now a subsidiary of Vikas Lifecare Limited. And, on January 2023, the company approved an investment of Rs. 250 Crores in Kohinoor Foods Limited.
Headquartered in New Delhi, Vikas Lifecare was incorporated in 1995. The company trades and manufactures polymer, rubber compounds and additives for plastics, synthetic and natural rubber, infra, agro products, and FMCG products.
Written By Vaibhav Patil
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