The penny stock Vikas Lifecare Ltd has seen remarkable growth this year, with a consistent upward trend. Investors in this stock experienced a surge of up to 15% on Monday, witnessing the company’s shares reaching a high of ₹7.40. This marks a new 52-week high for the stock. Notably, this penny stock, valued at less than ₹10, has been riding the bullish trend since the beginning of 2024. In this year alone, the share has climbed from ₹4.95 to its current price. During this period, it has delivered returns exceeding 50% to its shareholders.
The catalyst behind this surge can be attributed to the company’s recent filing with the exchange on Friday, disclosing information about the establishment of a joint venture (JV) with its associate company, Genesis Gas Solutions Private Limited. Vikas Lifecare has invested ₹108 crores to set up a smart meter manufacturing unit through this JV. The subsidiary, Genesis Gas Solutions Private Limited, has formed a JV, Genesis Technologies Limited, with Indraprasth Gas Limited (IGL). The ownership in this venture is distributed in a 49:51 ratio between the two companies.
The company’s plan involves setting up a smart meter manufacturing plant with an initial investment of ₹108 crores in Noida, Uttar Pradesh. The annual production capacity of this plant is slated to be 1 million smart meters. The facility, covering 65,000 square feet, is expected to commence operations in July of the current year.
Over the past month, investors in the company have enjoyed returns of approximately 40%. In the last six months, this penny stock has provided multibagger returns to its investors, surging by up to 120%. Six months ago, the stock was valued at ₹3 per share.
The bullish momentum in Vikas Lifecare Ltd can be attributed to the company’s strategic move into the smart meter manufacturing sector, signified by its substantial investment in the JV with Genesis Gas Solutions Private Limited. The focus on smart meters aligns with the growing demand for technology-driven solutions in the energy sector.
Investors seem to be responding positively to the company’s diversification and expansion plans, as reflected in the robust performance of its shares. The establishment of a joint venture and the announcement of the smart meter manufacturing unit have created a positive sentiment around Vikas Lifecare Ltd, driving the stock price to new highs.
As the company gears up to venture into the smart meter market, there is anticipation and optimism among investors regarding the potential growth and profitability of this segment. The decision to form a joint venture with a well-established player like Indraprasth Gas Limited further adds credibility to Vikas Lifecare Ltd’s strategic moves.
In conclusion, Vikas Lifecare Ltd’s penny stock has been on a remarkable upward trajectory, propelled by strategic decisions, investments, and expansion plans in the smart meter manufacturing sector. The recent filing regarding the joint venture and the subsequent surge in share prices indicate a positive market response to the company’s initiatives. Investors will be closely watching the developments in the smart meter manufacturing unit and the overall performance of Vikas Lifecare Ltd in the coming months.