The shares of one of the largest producers of high-end specialty chemicals climbed 2.6 percent to Rs 3.45 per share after the company paid off an additional loan of Rs 12.3 crore, decreasing the initial bank debt by 74 percent.
Vikas Ecotech Limited is a penny stock with a market capitalization of Rs 438 crore.The stock has gained 15 percent in the last six months.
As part of the company’s pre-defined debt reduction program, Vikas Ecotech Limited repaid another Rs.12.3 crore to bankers, bringing the total bank debt to Rs 45 crore.
While sprinting towards the targeted debt reduction, the Company initiated the process in August-September 2021, and since then, the Company has repaid a total of Rs. 118.7 crore to the bankers.
Thus, the overall bank debt has been reduced from its high of around Rs. 161.2 crore. Currently, around Rs 45 crore, representing a 74% (approx.) reduction from the peak level. The business disclosed this in its exchange filing.
The company‘s revenues reduced by 55 percent year on year, from Rs 134 crore in Q2FY23 to Rs 60 crore in Q2FY24, while net profit improved by 50 percent from Rs 3.54 crore to Rs 1.77 crore.
Vikas Ecotech Limited is primarily engaged in the business of manufacturing Specialty Chemicals focused on Additives and Specialty Polymer Compounds. The company manufactures methyl tin mercaptide, tin tetrachloride, oxidised soya bean oil, thermoplastic rubbers, 2-ethyl hexyl thioglycolate, and carbon black products.
Recently, the company has received orders worth about Rs. 22.5 crore for specialty polymer compounds.
The company had recently acquired a 100 percent stake in a plasticizer manufacturing business valued at an enterprise value of around Rs 27 crore, as per the company report, this acquisition may contribute additional revenue of about Rs 200+ crore per annum for the first year.
Vikas Eco Tech Limited has planned to install an additional line to increase the production of Polymer and Polyester Compounds at its existing plant located at Shahjahanpur, Alwar, Rajasthan.
At the time of writing this report, Vikas Ecotech Limited shares were trading at Rs 3.40 per share, up 1.50 percent from the previous close price.
Written by Omkar Chitnis
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