The shares of this microcap company surged around 8 percent in Thursday’s trading session after reporting an increase in net profits by 570 percent YoY. The stock has delivered more than a 30 percent return to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 718 crores, the shares of Vikas Ecotech Ltd started Thursday’s trading session on a higher note at Rs. 4.26 compared to its previous close of Rs. 3.77. During the trading session, the shares hit a high of Rs. 4.50, gaining around 8 percent and are currently trading at Rs. 4.02 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced its Q1FY25 results. Quarterly, the revenue jumped by 41 percent from Rs. 71.73 crores during the March quarter to Rs. 101.06 crores in the June quarter. In addition, the net profits surged by 351 percent from Rs. 2.30 crores to Rs. 10.38 crores during the same period. This substantial increase in net profit was attributed to a rise in Other Normal Income.
Comparing the same metrics on a YoY basis, the revenue zoomed by 75 percent from Rs. 57.7 crores during Q1FY24 to Rs. 101.06 crores in Q1FY25. On the other hand, the net profits magnified by around 570 percent from Rs. 1.55 crores to Rs. 10.38 crores during the same timeframe.
Moreover, during the quarter, the company acquired 100 percent of the shares of Shamli Steels Private Limited (SSPL) through a share swap agreement.
Under this agreement, the company issued 38,03,50,000 of its own shares in exchange for the shares of the subsidiary, with no cash consideration paid. This acquisition aligns with the company’s strategic objective to expand its market presence in the infra and energy sector.
Also read
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 1.81 percent and a return on capital employed (RoCE) of 4.22 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 2.64 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold a modest 10.66 percent of the shares, while Retail Investors own the remaining 89.34 percent.
Company Profile:
Headquartered in New Delhi, Vikas Ecotech was incorporated in 1984. They are primarily engaged in the business of manufacturing Specialty Chemicals focused on Additives and Specialty Polymer Compounds.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
