Specialty Chemical Stock Hit 5% Upper Circuit After Rs 22.5 Cr Order Deal: Do You Own?

Vikas EcoTech Ltd is a small-cap company in the commodities sector. The shares of Vikas EcoTech opened on the NSE at Rs 3.35 apiece and closed at a 5% upper circuit limit of Rs 3.45 with a market cap of Rs 432.89 Cr. The stock has dropped almost 5% over the last month, but it rebounded on Friday following the company's announcement of updates on the strengthening health in the chemical industry.

According to the company's report, Vikas Ecotech received orders for the specialty polymer compounds last Friday totalling Rs 22.5 crore. The orders will be fulfilled by February 15, 2023, at the latest, during the following 30 to 45 days. With these orders from the specialty polymer compounds business vertical, the firm aims to reach about Rs 100 crore in revenue contribution so far in the current fiscal year, it added. The company is looking forward to another round of order inflow leveraging the approaching seasonal export period between January and March of 2024.

The company said in a separate exchange filing that its promoter, Vikas Garg, has converted 3.5 crore convertible warrants into 3.5 crore equity shares. The conversion required a total payment of Rs 8,92,50,000, which equates to Rs 2.55 per warrant or 75% of the issue price.

Earlier in August, the company paid Rs 101 crore in dues to its lenders earlier in August, and by the 2023-2024 fiscal year, it aims to be debt-free. The business has paid its lenders a total of Rs 101.2 crore as per a regulatory filing, with Rs 60 crore still outstanding.

Vikas Ecotech is a prominent global supplier of premium speciality chemicals to clients worldwide. This firm manufactures a large range of environmentally safe, high-quality rubber-plastic compounds and additives. Its products meet a wide range of demands in the global market, from agriculture, automobiles, cables, electricals, hygiene, healthcare, polymers, packaging, and textiles to footwear.