Shares of this penny stock engaged in the business of manufacturing specialty chemicals jumped up to 4 percent in Thursday’s trading session after the company’s wholly-owned subsidiary successfully bagged its largest-ever export order worth Rs 165 million. In the past year, the company’s stock has gained over 50 percent for its holders.
With a market capitalization of Rs 510.92 crores, the stocks of Vikas Ecotech Limited (VEL) started their trading session on Thursday at Rs 3.69 and currently trade at Rs 3.68. The company’s stock witnessed an intra-day high price of Rs 3.75 indicating a gain of around 4 percent compared to the previous closing level of Rs 3.62 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about Vikas Organics Private Limited (VOPL), a wholly-owned subsidiary company of Vikas Ecotech Limited, receiving its largest-ever export order for ‘Vinyl Plasticizers’ worth Rs 165 million.
The abovementioned order is a variable price contract covering regular supplies to the renowned “Yusuf Bin Ahmed Kanoo Group” of KSA over the coming months. The order is decided to be executed by FY24-25.
VOPL regularly exports plasticizers to the United States and KSA and both the teams have been working closely to further boost the global reach of the companies and targeting Exports of niche materials from both of their product offerings.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, showed movements in opposing directions.
The former, on one end, increased from Rs 60.74 crore during Q2FY24 to Rs 68.46 crores during Q3FY24, and the latter, on the other end, witnessed a marginal dip from Rs 1.77 crores to Rs 1.23 crores.
In addition, the company’s ratio analysis exhibits the return ratios reported at average numbers with the return on equity (RoE) reported at 5 percent and the return on capital employed (RoCE) at around 10 percent.
Vikas Ecotech Limited is a company based in India that is primarily engaged in the business of manufacturing specialty chemicals. The Company also focuses on specialty polymer compounds and chemical additives. It caters to various industries, such as packaging, FMCG, pharmaceuticals, automotive, and other consumer goods.
Written by Amit Madnani
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