Vikas Lifecare was incorporated in 1995. The company trades and manufactures polymer, rubber compounds and additives for plastics, synthetic and natural rubber, infra, agro products, and FMCG products.
With a market capitalisation of Rs. 938 crores, the shares of Vikas Lifecare Ltd started Tuesday’s trading session on a higher note at Rs. 6.90 compared to its previous close of Rs. 6.65. The shares hit a high of Rs. 7.30, gaining around 6 percent and also recorded as the company’s fresh 52-week high.
Vikas Lifecare shares have gained 28 percent in the last month and have delivered a multibagger return of 111 percent to its investors in six months. For example, if someone had invested Rs. 1 lakh in these shares six months ago, then the worth of those shares would be Rs. 2.11 lakhs now.
Reflecting on orders and acquisitions, the stock has moved significantly over the previous few days. Here are the reasons:
Earlier, on November 16, 2023, through its material subsidiary Genesis Gas Solutions, the company received an order worth Rs. 46.5 crores from Gujarat Gas Limited to supply 40,000 gas meters. The order is to be executed by the end of FY 2023-24. Genesis pioneer in Smart Gas and Water Metering in India, commands about 20 percent of the Domestic Gas Metering share in India.
On January 2, 2024, Vikas Lifecare announced raising funds via QIP worth Rs. 1,000 million. decided to bring QIP in two tranches. 1st tranche of QIP not exceeding Rs. 500 million and the remaining amount of Rs. 500 million will be raised by the company in the second or subsequent trench.
The issue amounting will not exceed Rs. 1,000 million as approved by the members on the 28th Annual General Meeting dated September 30, 2023, and the floor price for the issue is set at Rs. 5.02 per Equity Share, based on the pricing formula as prescribed under the SEBI ICDR Regulations.
Furthermore, on January 3, 2024, the company acquired a new land piece measuring about 1,800 Sq. Mtr. adjoining to the existing factories located at RIICO Industrial Area, Shahjahanpur, Rajasthan and this acquisition of land is expected to add an additional Rs. 600 million to the gross revenues from the compounding business segment.
Coming onto the company’s financial statements, the revenue increased by 17 percent from Rs. 98.89 crores in the June quarter to Rs. 116.03 crores during the September quarter. On a contrasting note, the net profits declined by 31 percent from Rs. 11.07 crores to Rs. 7.65 crores during the same timeframe.
Written By Vaibhav Patil
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