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Vikas Ecotech Limited is a publicly traded company listed on the National Stock Exchange of India (NSE) under the symbol VIKASECO. The company manufactures and sells specialty chemicals such as plasticizers, additives, and polymers. Vikas Ecotech also produces and markets environmentally friendly products, including bio-based solvents, adhesives, and recycled plastic particles. The company strongly focuses on sustainability and environmental responsibility and operates several manufacturing facilities in India.
Information About NSE
NSE stands for National Stock Exchange of India, one of India’s major stock exchanges. It was established in 1992 and continued headquartered in Mumbai, India. NSE provides a platform for trading equity, derivatives, and other financial instruments.
NSE is India’s first electronic stock exchange, and it has revolutionized the Indian stock market by introducing an electronic trading system, online trading, and real-time trading information. It has a wide range of investors, including retail, institutional, and foreign investors.
NSE has also contributed to the growth of the Indian economy by providing access to capital to companies through its primary market and enabling trading and liquidity in the secondary market. Ity has a robust regulatory framework and operates under the supervision of the Securities and Exchange Board of India (SEBI).
NSE: VIKASECO – Vikas Ecotech has strong Profitability from weak Fundamentals.
Surprisingly, the share price of Vikas Aquatech Ltd. was high on the back of a good earnings report. However, we recognize that shareholders may have missed some details regarding the numbers.
Examining Cashflow Against Vikas Ecotech’s Earnings
Not many investors have heard of the cash flow-to-accumulation ratio. Still, it’s a valuable measure of how well a company’s Profitability remains covered by free cash flow (FCF) over a given period. In plain English, this ratio subtracts FCF from net profit and divides that number by the company’s average operating assets over the period. You can think of the cash flow to accrual ratio as a ‘non-FCF profitability ratio.’
It means that a negative gearing ratio is good, as it shows that the company is bringing in more free cash flow than its profits. This is not to say that we must worry about a positive accrual ratio, but it is worth noting that it is high. It is because some academic studies have suggested that higher earnings ratios lead to lower profits or lower profit growth.
A Look At The Impact Of Vikas Ecotech’s Dilution On Its Earnings Per Share (EPS)
We do not have any figures for the company’s profits for the past three years. And even focusing only on the last twelve months, we don’t have any meaningful development as it suffered a year ago. Math aside, it’s always good to see when an already unprofitable business is doing well (though we acknowledge that profits would be higher if there were no need to downsize). And so, you can see that the weakness is having a significant impact on shareholders.
If Vikas Aquatech’s earnings per share can grow long-term, the share price should also grow. However, if its profits increase while its earnings per share remain flat (or even fall), shareholders may not see much profit. For the typical retail shareholder, EPS is a good measure of valuing your notional “share” in the company’s profits.
Our Take On Vikas Ecotech’s Profit Performance
Finally, Vikas Ecotech has strong free cash flow relative to earnings, indicating good quality earnings, but weakness means that its earnings per share are declining faster than its profits. Built on these factors, we think it is improbable that Vikas Ecotech’s statutory return will make it look much weaker than it is. With the uncertainty you want to know more about developing Ecotech as a business, it is essential to be aware of any risks it may face.
Vikas Ecotech Scouts for Acquisition
A top company official has said that Vikas Aquatech Ltd is looking to generate revenue of Rs 360 crore in the next financial year to resume exports, which stood halted due to the Covid-19 pandemic.
Vikas Aquatech Ltd (VEL), a maker of specialty chemical and polymer products, expects a revenue of Rs 360 crore in the next financial year as exports resume, which stood disrupted due to the COVID-19 pandemic—the company A top official has said.
Vikas Aquatech (VEL) is also looking for manufacturing facilities in the western region as it plans for expansion. The company is also looking at new ventures for broad-based business interests, new materials or products, geographies, and market segments as part of diversification.
Vishal Aquatech CEO Dinesh Bhardwaj said that while VEL is looking for suitable manufacturing facilities/business in the western region, the company has Rs 200 million (Rs 20 crore) for expansion and diversification projects and is managing investments over it. He said that the provision could remain increased if required.
About NSE: vikaseco
The NSE- and BSE-listed company expects a revenue of Rs 360 crore in the next financial year, compared to a revenue estimate of Rs 295 crore in the current financial year.
It reported a revenue of Rs 116 crore in 2020-21 as the deadly coronavirus pandemic hit the business.
The company recently announced that its specialty compound division had received new orders worth Rs 65 million (Rs 6.5 crore), taking the healthy order book to over 700MT in the current financial year. It will help in performance. It ended the current financial year with exciting figures.
The New Delhi-based company has also expanded into new business areas such as steel pipe fittings and infrastructure products such as MDPE pipes for gas applications.
Vikas Aquatech Limited is engaged in specialty polymers, specialty additives, and chemicals for the plastic and rubber industries to meet a vast horizon of applications in agriculture, infrastructure, and packaging. Electrical, footwear, pharmaceuticals, automotive, medical devices, and components Have happened. does—other consumer goods.
In this article, we have considered several factors that can reduce the use of profitability numbers as a guide to business. But if you can focus on the little things, there’s always more to discover. For example, many people deliberate a high return on equity as a sign of favorable business economics, while others prefer to ‘follow the money’ and find stocks that insiders buy. Although it may require a little research, you may find this free collection of companies claiming high returns on equity or lists of stocks that insiders are buying useful.