Shares of this microcap company clocked 5 percent upper circuit in Wednesday’s trading session after receiving a fresh order for Premium Nuts valued at Rs. 110 Million. The shares have delivered more than 70 percent returns to its shareholders in one year.
With a market capitalization of Rs. 952 crores, the shares of Vikas Lifecare Ltd started Wednesday’s trading session on a higher note at Rs. 5.50 compared to its previous close of Rs. 5.35. Within a few minutes of the opening bell, the shares locked 5 percent upper circuit at Rs. 5.60 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the company’s Karnataka processing facility had received fresh orders for Premium nuts valued at about Rs. 110 Million (Rs. 11 crores). These orders will be completed within the first quarter of the current fiscal.
Looking at the company’s financial statements, the revenue decreased by 14 percent from Rs.116.03 crores during the September quarter to Rs. 99.28 crores in the December quarter. On the other hand, during the same period, there was a significant shift in net profits, moving from a positive net profit of Rs. 7.65 crores to a net loss of Rs. 3.87 crores.
Earlier, the company had received an order for rice, valued at about Rs. 500 Million, bolstering its presence in the premium and organic rice segments. Of these orders, Rs. 400 Million are attributed to premium rice varieties, while the remaining Rs. 100 Million represents orders for Organic Breeds of Rice.
Furthermore, the company’s Agro Products Division has set an ambitious target of Rs. 4,500 Million for the current F.Y., as compared to Rs. 3,600 Million achieved in the preceding FY, targeting more than 20 pecrent growth on a YoY Basis.
To enhance the growth trajectory, the company is exploring opportunities to expand its businesses via acquiring going businesses and processing facilities. Previously, Vikas Lifecare had acquired Agro Products processing facilities in Karnataka and Uttar Pradesh which has helped fast-track the company’s capacities and capabilities and enabled it to cater to a wider market.
Moreover, as a long-term business strategy, the company has most recently diversified its business interests beyond raw materials (B2B businesses) and forayed into the B2C segment with various consumer products including FMCG, Agro, and Infrastructure Products.
Additionally, the company is expanding its presence in the entertainment sector through a new endeavour in film production. This strategic initiative signifies Vikas Lifecare Limited’s foray into the vibrant realm of cinema, utilizing its proficiency in creativity and innovation to produce engaging and intellectually stimulating content for global audiences.
Headquartered in New Delhi, Vikas Lifecare Ltd was incorporated in 1995. The company is conventionally engaged in various business segments i.e. Polymer and Rubber Commodity (bulk consumption) Compounds and Master Batches, post-consumer waste materials, and FMCG.
Written By Vaibhav Patil
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