The shares of this leading provider of high-end specialty chemicals gained up to 0.29 percent after the company bagged orders worth about INR 225 Million, for the specialty polymer compounds.
With a market capitalization of Rs 427.73 Crores. Vikas Ecotech Ltd, On Friday, The shares closed at Rs 3.30 a share, a decrease of 1.20 percent from the previous closing price.
According to the exchange filing, Vikas Ecotech Ltd bagged orders worth about INR 225 Million, for the specialty polymer compounds from Polycab India Ltd, Narmad Polymers, and many more. The company will service these orders in the upcoming thirty to forty-five days.
Furthermore, with these orders from the Specialty Polymer Compounds business vertical, the company will have nearly INR 1000 million in revenue contribution for the current fiscal year. Looking ahead, it anticipates another wave of order inflow that will capitalize on the upcoming seasonal export period, which runs from January to March 2024.
As a long-term plan, the technical team at Vikas Ecotech has dedicated a great deal of time and effort to creating technically advanced, more effective, and specially designed grades that provide maximum efficiency and the best possible cost-to-performance proposition for its end users. During this Financial Year, the company’s Specialty Compounds business generated the intended INR 1500 million.
In a recent all-cash deal, Vikas Ecotech Ltd. acquired 100% of the equity in a plasticizer manufacturing business valued at approximately Rs. 270 million. The deal is expected to be completed and generate additional revenue of approximately INR 2000 million per year for the first year.
Looking into the company’s performance revenue decreased by 54.7 percent from Rs 134.33 Crore in Q2FY23 to Rs 60.74 Crore in Q2FY24. During the same period, net profit decreased by 50 percent from Rs 3.54 crore to Rs 1.77 crore.
Manufacturing specialty chemicals, with an emphasis on additives and specialty polymer compounds, is the main line of business for Vikas Ecotech Limited.
Since the financials of penny stocks don’t reflect their true situation, investing in them carries inherent risks and should be done so carefully. There is no financial advice contained in this article.
Written by:- Abhishek Singh
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