Vikas Lifecare shares rise 37% in 3 sessions; Here's what driving this microcap higher

Shares of Vikas Lifecare extended its gains for the straight third session on Thursday as the stock rose another 5 per cent during the early trading hours. The company has surged 37 per cent in the last three sessions on the back of a strong quarterly performance and acquisition buzz.

Vikas Lifecare returned to black in the June 2023 quarter on a quarter-on-quarter (QoQ) basis as the company reported a standalone net profit at Rs 13.31 crore, compared to a net loss of Rs 25.97 crore in the March 2023 quarter. On a year-on-year (YoY) basis, its bottomline jumped manifold from a profit of Rs 2.34 crore in the quarter ended on June 30, 2022.

Total Income of the company rose 26 per cent QoQ and 20 per cent YoY to Rs 106.31 crore in the first quarter of the ongoing fiscal. Its total income came in at Rs 84.15 crore in the March 2023 quarter and Rs 88.87 crore in the June 2022 quarter. Operating profit came in around Rs 4 crore with an operating profit margin around 4 per cent in Q1FY24.

Earlier this week, Vikas Lifecare announced that it has acquired a majority stake, 98 per cent, in MSR Apparels for nearly Rs 12.5 crore. MSR Apparels is engaged in the manufacturing of all types of textile garments and clothing accessories. Post the cash consideration deal, MSR Apparels has become a subsidiary of the company.

Shares of Vikas Lifecare surged 5 per cent to Rs 4.25 on Thursday, commanding a total market capitalization close to Rs 600 crore. The scrip had settled at Rs 4.06 on Wednesday. The stock has rallied more than 37 per cent in the last three sessions, from its price at Rs 3.11 on August 11.

The company said that the latest acquisition will help in further diversifying its product portfolio and driving it into futuristic and unique product lines in the new edge businesses. Vikas Lifecare lately has forayed into the B2C segment with a host of consumer products including FMCG, agro, and infrastructure products.

Vikas Lifecare is engaged in various business segments including polymer & rubber commodity, compounds and master-batches. It also manufactures up-cycled compounds from industrial and post-consumer waste and scrap materials. It also provides a wide variety of base polymers and commodity raw material to ONGC.  

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