The small-cap company, which has a market valuation of around 659 crore, garnered significant purchasing interest following the announcement of a QIP issuance for qualified institutions, which was priced at a reduced level of 4.65 per share. This penny stock below ₹5 has also become a favorite among FII investors. Large investments in this penny stock have been made by reputable FPIs as the Mauritius-based AG Dynamic Funds and Citrus Global Arbitrage Fund. In fact, from July to September 2022, AG Dynamics Funds increased its stake in the penny stock from 2.19 percent to 3.90 percent.
FIIs’ ownership of Vikas Lifecare
The Mauritius-based AG Dynamic Funds owns 5,20,70,938 shares, or 3.90 percent, of Vikas Lifecare, according to the company’s ownership pattern for the quarter from July to September 2022. Similar to other FPIs, Citrus Global Arbitrage Fund owns 5,20,83,333 shares of the firm, or 3.90 percent of it. Since AG Dynamic Funds held 2,70,000,000 shares, or 2.19 percent of the firm, in the first quarter of FY23, the FII’s investment in the penny stock has increased from 2.19 percent to 3.90 percent.
An overview of Vikas Lifecare
Established in 1995, Vikas Lifecare Limited (formerly Vikas Multicorp Ltd.) specialises in the manufacture and distribution of polymer compounds as well as the recycling of plastic waste. Based in the nation’s capital, the business is a trading house for chemicals with a focus on polymer additives. It has extensive industry expertise and in-depth understanding of both the local and global polymers markets.
With a solid operational experience spanning more than two decades in the production of speciality chemicals for the plastics sector, VLL has a comprehensive grasp of product design and market trends. The Company has extensive market understanding of both the local and international polymer markets.
In terms of service excellence and value creation for the clients who have supported the business with their patronage and loyalty, the firm has established an industry standard. The business has ISO 9001:2015 certification for the manufacture and selling of PVC compounds, EVA, PP, PE, BASE polymers, additives, and chemicals. Its production centre is situated at Vigyan Nagar, RIICO Industrial Area, Shahjahanpur, Rajasthan, and Alwar, Rajasthan.
Business division of the business
The company’s main activities include trading in polymer compounds and recycling plastic waste (recycling materials). A variety of polymer compounds, including ethylene-vinyl acetate (EVA Compounds), polyvinyl chloride resins (PVC resins), chlorinated parrafin, polyethylene compounds (PE Compounds), and thermoplastic rubber compounds were traded by the firm up to 2019. In contrast, the company began producing polymer compounds such as PE compound, polyvinyl chloride compound (PVC compound), V blend SOE compound, polypropylene compound (PP granules), and TPR compound starting in FY 2019–20 as a result of the acquisition of the “Recycled and Trading Compounds Division” of group concern “Vikas Ecotech Limited” under the scheme of arrangement approved by National Company Law Tribunal, Principal Bench, New Delhi.
PROS
- The business has cut its debt.
- The business is practically debt-free.
- The company should have a strong quarter.
- Over the last five years, the company has produced solid profit growth of 232% CAGR.
- The number of debtor days decreased from 227 to 62.3 days.
- The company’s need for working capital has decreased from 155 days to 41.5 days.
CONS
- Promoter holding is down from the previous quarter: -1.04%
- Low promoter holding 12.3%
- Company’s recent three-year average return on equity was just 13.0%.
- A $41.3 billion additional income is included in earnings.
1. Is Vikas Lifecare Ltd a Good Comany ?
According to Moneyworks4me’s research of Vikas Lifecare Ltd’s financial performance over the last 10 years, the firm is of below average quality.
Vikas Lifecare Ltd.: Is it overpriced or undervalued?
When compared to its historical key valuation ratios, Vikas Lifecare Ltd. seems to be in the Fair range.
3. Is it a good time to purchase Vikas Lifecare Ltd?
MoneyWorks4Me’s study of price trends shows that they are Weak, which suggests that the price of Vikas Lifecare Ltd is probably going to fall in the near future. However, before making an investment, please review the Quality and Valuation ratings.
4. Is Vikas Life Care Is Debt Free
It is Virtually Debt Free Company and reducing the debt rapidly
5. What is the future of Vikas Lifecare?
The Current Price Indicates That it is on affordable price and ready to invest.
6. What does Vikas Lifecare Do ?
The firm Vikas Lifecare Ltd. (VLL), which has received ISO 9001:2015 certification, specialises in the manufacture and trade of polymer, rubber compounds, and additives for plastics, synthetic rubber, and natural rubber.
7. How to Buy Vikas Lifecare Share?
You can easily buy Vikas Lifecare shares in Dhan by creating a demat account and getting the KYC documents verified online.
8. What is the Share Price of Vikas Lifecare?
The share price of any stocks is volatile and keeps changing throughout the day owing to different factors. Vikas Lifecare share price is ₹5.15 as of 2 December ’22.
