Vikas EcoTech shares surge 6% after strong business updates

Shares of Vikas EcoTech jumped about 6 per cent during the trading session on Tuesday after the company shared business updates from its polymer compounds division. The company shared the update through a regulatory filing with the exchanges on Monday. Vikas EcoTech said it has bagged fresh orders for specialty compounds valued at around Rs 9 crore. The speciality compound sales registered so far during Q1 of the current fiscal is Rs 19.7 crore and the target for the current quarter is Rs 28.5 crore, which is 9 per cent higher on a sequential (QoQ) basis, it said. The company has also gained approvals and commercial orders from the insulation division of Olectra Greentech, a renowned electric bus manufacturer for the speciality fire retardant materials in the first quarter of ongoing fiscal while it has also added footwear manufacturer Paragon Polymer in its customer base, it said. Following the updates, shares of Vikas Ecotech surged about 6 per cent to Rs 3.56 on Tuesday and the company's total market capitalization stood more than Rs 335 crore. The scrip had settled at Rs 3.37 on Monday. The stock has gained about 25 per cent in the last one month. The microcap player recently raised funds via qualified institutional placement (QIP) as its first tranche of Rs 50 crore concluded on June 2.  The company allotted a total of 17.85 crore equity shares to AG Dynamic Funds, Vikasa Global Fund PCC- Eubilia Capital Partners Fund-I and Calypso Global Investment Fund. Vikas Ecotech reported a 46 per cent increase on a year-on-year (YoY) basis in its net profit at 1.79 crore in the March 2023 quarter, against a net profit of Rs 1.23 crore in the year ago period. The company had clocked a net profit at Rs 2.78 crore in the December 2022 quarter. Vikas Ecotech is expanding its business portfolio by manufacturing steel pipes and MDPE (medium-density polyethene) pipes. Last month, the company forayed into the real estate sector for development of commercial and residential projects in Gurugram, Haryana. The New Delhi-based company is engaged in the business of specialty polymers for applications in sectors like electrical, infrastructure, packaging, and automotive, among others.