A penny Stock gained nearly 19 percent on Wednesday’s intraday trades after it reported robust results for the April to June quarter of the current financial year (Q1FY24).
Vikas Lifecare trades and manufactures polymer, rubber compounds and additives for plastics, synthetic & natural rubber, infra, agro products, FMCG products, and so on.
The company reported a 340 percent increase in its consolidated net profit at ₹ 11.70 crores in Q1FY24, compared to 2.66 crores in the corresponding quarter of the previous year (Q1FY23). Its revenue climbed 7 percent to ₹ 98.89 crores in the latest quarter, compared to ₹ 92.20 crores in Q1FY23.
In another development, the company informed the exchanges that it has acquired a 98 percent stake from the promoters of MSR Apparels Pvt. Ltd., a company that manufactures all types of textile garments and clothing accessories. This acquisition happened in an all-cash deal for a total consideration of ₹ 125 million.
Post these announcements, the company’s shares touched an intraday high of ₹ 4.10. At 02:56 PM, its shares were trading at ₹ 4.05 apiece on the National Stock Exchange (NSE).
Vikas Lifecare has recently diversified its business interests beyond raw materials, a B2B business, and forayed into the B2C segment with a host of consumer products including FMCG, Agro, and Infrastructure Products; is entering into another essential aspect of life, textile, garments and clothing.
Recently, the company’s wholly-owned subsidiary Genesis Gas Solutions Pvt Ltd was awarded orders for supplying ultrasonic gas meters to Indraprastha Gas Ltd.
Penny stocks might provide above-average returns, however, they are highly risky investments and require caution. These stocks tend to have low liquidity and are subject to pump-and-dump schemes. It is important to consult an investment advisor or perform complete research on these stocks before investing in them.
Written by Simran Bafna
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