Multibagger penny stock in specialty chemicals forays into green-enviro-friendly infra projects in Delhi-NCR
The rise in demand for infrastructure in developing economies has pushed companies to tap climate-friendly measures, with the government giving a thrust to developing sustainable green infrastructure. A green-enviro-friendly infrastructure encompasses technologies and practices that use natural processes.
Amid increasing investments and a push to bring economies into sync with the fight against climate change, Delhi-based small-cap stock, Vikas Ecotech, has announced a foray into sustainable infrastructure to bolster the fight against climate change. In an exchange filing, the firm said that it has collaborated with Estate Projects in Delhi-NCR to develop two projects.
It said that the latest collaboration will help it play its part in pushing green economic growth in the country.
Vikas Ecotech is primarily in the specialty chemicals segment. In an exchange filing, the company noted that it will benefit from Estate Projects’ over three decades of experience in the residential, commercial, and hospitality segments. The new projects will come up in Haryana’s Gurugram.
Under the collaboration arrangement, it will incur 75 per cent of the total project cost as the collaborator. The estimated project cost of targeted projects is about Rs 50 crore.
The company is actively considering similar proposals that complement the existing business, and venturing into the infrastructure development segment makes a forward integration for many of its products and materials that it is currently supplying to the infrastructure projects. The latest collaboration will generate additional sales of infrastructure projects, thus driving the top line.
Vikas Ecotech is an emerging player in the high-end specialty chemical business. It manufactures products that are widely used across industries including agriculture.
It has a market capitalisation of Rs 349 crore and is trading at a PE of 36.56. The company’s shares have returned more than 50 per cent in the last two years.
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