With a market capitalization of ₹ 599 crores and a share price of ₹ 4.50, Vikas Lifecare Ltd. (VLL), is a penny stock. The company is engaged in the business of manufacturing polymer and rubber compounds and specialty additives for plastics, synthetic & natural rubbers. up-cycled. It manufactures up-cycled compounds from industrial and post-consumer waste and scrap materials, directly contributing to environmental protection initiatives.
In a stock exchange filing, VLL informed that its in-house R&D units recently got recognition from the Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India (DSIR).
The recognition and pursuing benefits will help VLL generate revenue via manufacturing niche materials or sales of in-house technology to produce materials and or royalty fee generated from the technology/technique is let out to other producers of similar materials.
The company’s total income in the September quarter grew 80.55% from 71.77 crores to ₹ 129.57 crores. However, its profit declined by 2.69% from ₹ 2.56 crores to ₹ 2.49 crores.
VLL has an ideal return on equity of 21.57%. Its shares were trading at a price-to-earnings ratio of 8.43, which is significantly lower than the sector P/E of 49.
15, indicating that the stock might be undervalued as compared to its peers.
The shareholding pattern of the company shows that it has a high retail shareholding of 78.15%, its promoters hold a 12.27% stake, and foreign institutions hold a 9.58% stake in it.
Written by Simran Bafna
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