Vikas Ecotech Limited was listed on the NSE on December 12, 2011. In the last five years, its stock has given a massive return of more than 200%. Will Vikas Ecotech continue to provide such great returns in the future as well? Let’s explore Vikas Ecotech’s growth potential and Vikas Ecotech share price target from 2025 to 2050 in this article.
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About Vikas Ecotech
Vikas Ecotech was established in 1984. It manufactures and supplies speciality chemicals, plastic chemicals, and rubber-plastic products. The company offers environmentally friendly solutions for industries such as agriculture, automobiles, infrastructure, and packaging. Vikas Ecotech is well-known for manufacturing high-quality materials such as heat supports, flame retardants, and polymer compounds.
Vikas Ecotech Business Model
- Speciality Chemicals Production: The company manufactures speciality additives and polymer compounds for use in industries such as electrical, infrastructure, packaging, and automotive.
- Infrastructure Product Manufacturing: Vikas Ecotech manufactures steel pipes and medium-density plastic (MDPE) pipes for gas applications, meeting infrastructure requirements.
- Real Estate Development: Vikas Ecotech is involved in real estate projects, such as green and environmentally friendly infrastructure developments in the Delhi-NCR region.
- Specialty-Recycled Materials: The company produces specialty-recycled materials such as polyvinyl chloride (PVC) and PET (polyester compounds to promote reliability.
Vikas Ecotech Fundamental Analysis
| Stock Name | Vikas Ecotech Ltd. |
|---|---|
| NSE Symbol | VIKASECO |
| Market Cap | ₹ 421 Cr. |
| 52W High | ₹ 4.50 |
| 52W Low | ₹ 2.21 |
| Stock P/E | 28.1 |
| Book Value | ₹ 3.11 |
| Dividend Yield | 0.00 % |
| ROCE | 4.62 % |
| ROE | 2.15 % |
| Face Value | ₹ 1.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 9.32% | 13.57% | 10.65% |
| FIIs | 0.03% | 0.01% | 0.02% |
| DIIs | 0.00% | 0.00% | 0.00% |
| Public | 90.64% | 86.42% | 89.32% |
| No. of Shareholders | 2,65,412 | 5,01,025 | 5,79,874 |
Key Factors Driving Vikas Ecotech Future Growth
- Sustainability Focus: Vikas Ecotech prioritises environmentally friendly products, such as non-toxic methyl tin mercaptide (MTM) supports and Calcium-Zinc (CaZn) heat buffers, in line with global trends.
- Innovative Approach: Vikas Ecotech invests in R&D to create new products, such as vulcanised rubber gaskets for PVC pipe fittings, in order to meet customer demands and remain competitive.
- Responsive Strategies: Vikas Ecotech responds to market changes by establishing India’s first 2-Ethylhexyl Thioglycolate (2-EHTG) manufacturing plant, which ensures a regular supply of critical raw materials.
- Strategic Acquisitions: Vikas Ecotech’s acquisition of Shamli Steels Pvt Ltd and Vikas Organics broadens its market presence and product offerings, improving its position in the speciality chemicals industry.
- Market Demand for Eco-Friendly Products: Vikas Ecotech will benefit from the global shift towards sustainable materials, as its eco-friendly products meet increasing environmental regulations and consumer preferences.
- Technological Advancements: Vikas Ecotech’s ongoing investments in new technologies ensure that its products meet industry standards, resulting in higher share value.
- Expanding Product Collection: Vikas Ecotech is increasing revenue streams by increasing into sectors such as agriculture, infrastructure, healthcare, and consumer electronics, which boosts investor confidence and share prices.
Pros of Vikas Ecotech
- Low P/B Ratio (Undervalued Stock): Vikas Ecotech has a low Price to Book Value (P/B) ratio of 0.79, which indicates that the stock is trading below its intrinsic value and may be undervalued compared to its assets.
- Debt Free Company: Vikas Ecotech is almost debt free company with a debt to equity ratio of 0.06, which shows its financial stability.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 0.02% in December 2024 from 0.00% in September 2024, which indicates growing confidence in the Vikas Ecotech’s future potential by the FIIs.
Cons of Vikas Ecotech
- Low Return on Capital Employed (ROCE): Vikas Ecotech’s 5-year average ROCE is 4.62%, indicating inefficient use of capital to generate profits.
- Overvaluation Concern: Vikas Ecotech’s stock is trading at a PE ratio of 28.7, which is relatively higher than the industry average of 21.2, which indicates that the stock may be overvalued compared to its peers.
- Low Promoter Holding: Vikas Ecotech’s promoter holding is 10.6%, which is relatively low. This may indicate low promoter confidence and less control over decision-making.
| Years | Target Price |
|---|---|
| Vikas Ecotech Share Price Target 2025 | ₹2.90 to ₹3.70 |
| Vikas Ecotech Share Price Target 2026 | ₹3.60 to ₹4.80 |
| Vikas Ecotech Share Price Target 2027 | ₹4.30 to ₹6.20 |
| Vikas Ecotech Share Price Target 2028 | ₹5.10 to ₹8.10 |
| Vikas Ecotech Share Price Target 2029 | ₹6 to ₹10.50 |
| Vikas Ecotech Share Price Target 2030 | ₹7 to ₹13 |
| Vikas Ecotech Share Price Target 2035 | ₹15 to ₹40 |
| Vikas Ecotech Share Price Target 2040 | ₹30 to ₹125 |
| Vikas Ecotech Share Price Target 2050 | ₹120 to ₹740 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: NCL Research Share Price Target 2025 to 2050