BSE:530961

Stock Analysis Report

Executive Summary

Vikas EcoTech Limited manufactures and sells specialty additives, and rubber-plastic and polymer compounds in India.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

How has Vikas EcoTech's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.7%

530961

2.4%

IN Chemicals

1.6%

IN Market


1 Year Return

-79.4%

530961

14.0%

IN Chemicals

0.8%

IN Market

Return vs Industry: 530961 underperformed the Indian Chemicals industry which returned 14% over the past year.

Return vs Market: 530961 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

530961IndustryMarket
7 Day-6.7%2.4%1.6%
30 Day-20.6%5.4%1.5%
90 Day-28.1%7.9%-3.3%
1 Year-79.1%-79.4%15.3%14.0%2.7%0.8%
3 Year-80.5%-80.8%36.0%31.8%22.0%16.0%
5 Year-47.2%-48.4%128.1%115.2%42.3%29.3%

Price Volatility Vs. Market

How volatile is Vikas EcoTech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vikas EcoTech undervalued compared to its fair value and its price relative to the market?

7.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 530961 (₹3.2) is trading above our estimate of fair value (₹0.52)

Significantly Undervalued: 530961 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530961 is good value based on its PE Ratio (7.4x) compared to the Chemicals industry average (10.4x).

PE vs Market: 530961 is good value based on its PE Ratio (7.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 530961's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530961 is good value based on its PB Ratio (0.6x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Vikas EcoTech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 530961's forecast earnings growth (14% per year) is above the savings rate (7.6%).

Earnings vs Market: 530961's earnings (14% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: 530961's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 530961's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 530961's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 530961's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vikas EcoTech performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 530961's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: 530961's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530961 had negative earnings growth (-54.9%) over the past year, making it difficult to compare to the Chemicals industry average (9.9%).


Return on Equity

High ROE: 530961's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: 530961's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: 530961's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vikas EcoTech's financial position?


Financial Position Analysis

Short Term Liabilities: 530961's short term assets (₹3.3B) exceeds its short term liabilities (₹2.2B)

Long Term Liabilities: 530961's short term assets (3.3B) exceeds its long term liabilities (251.9M)


Debt to Equity History and Analysis

Debt Level: 530961's debt to equity ratio (110.1%) is considered high

Reducing Debt: 530961's debt to equity ratio has reduced from 158.1% to 110.1% over the past 5 years.

Debt Coverage: 530961's debt is not well covered by operating cash flow (6.7%).

Interest Coverage: 530961's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 530961 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530961's debt is covered by short term assets (assets are 2.093040x debt).


Next Steps

Dividend

What is Vikas EcoTech's current dividend yield, its reliability and sustainability?

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 530961's dividend (1.56%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 530961's dividend (1.56%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: 530961 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 530961's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.6%), 530961's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Vikas EcoTech's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Dinesh Bhardwaj 0

0.3yrs

Tenure

0

Dr. Dinesh Bhardwaj is the Chief Executive Officer of Vikas EcoTech Limited since June 28, 2019. Dr. Bhardwaj is a PhD holder in Chemical Sciences having studied at Council of Scientific & iIndustrial Rese ...


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: 530961's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 530961's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹5,616,51911 Mar 19
Vikas Garg
EntityIndividual
Role
Member of the Board of Directors
MD & Executive Director
Shares500,000
Max Price₹11.23
Sell₹103,439,57410 Dec 18
Vikas Garg
EntityIndividual
Role
Member of the Board of Directors
MD & Executive Director
Shares8,620,000
Max Price₹12.00

Ownership Breakdown


Management Team

  • Vikas Garg (46yo)

    MD & Executive Director

    • Tenure: 10.3yrs
  • Devender Garg

    Director of Finance & Whole-Time Director

    • Tenure: 2.2yrs
  • Amit Dhuria

    Chief Financial Officer

    • Tenure: 1.4yrs
  • Dinesh Bhardwaj

    Chief Executive Officer

    • Tenure: 0.3yrs
  • Pooja Vanjani

    Company Secretary & Compliance Officer

    • Tenure: 0.2yrs

Board Members

  • Ghyanendra Bajpai (77yo)

    Chairman of Advisory Board

    • Tenure: 3yrs
  • Sunil Alagh (73yo)

    Vice Chairman of Advisory Board

    • Tenure: 0yrs
  • Sumer Tayal (73yo)

    Independent Non Executive Director

    • Tenure: 13.3yrs
  • Vikas Garg (46yo)

    MD & Executive Director

    • Tenure: 10.3yrs
  • Vivek Garg (45yo)

    Non-Executive Director

    • Tenure: 11.3yrs
  • Vibha Mahajan (48yo)

    Independent & Non-Executive Director

    • Tenure: 4.2yrs
  • Devender Garg

    Director of Finance & Whole-Time Director

    • Tenure: 2.2yrs
  • Ravi Gupta

    Non Executive & Independent Director

    • Tenure: 0.7yrs
  • Purnima Gupta

    Non Executive & Independent Director

    • Tenure: 0.7yrs
  • Gyan Govil

    Independent Chairman

    • Tenure: 0.2yrs

Company Information

Vikas EcoTech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vikas EcoTech Limited
  • Ticker: 530961
  • Exchange: BSE
  • Founded: 1984
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹864.890m
  • Shares outstanding: 279.90m
  • Website: https://www.vikasecotech.com

Number of Employees


Location

  • Vikas EcoTech Limited
  • 34/1 Vikas House
  • East Punjabi Bagh
  • New Delhi
  • Delhi
  • 110026
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530961BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2000
VIKASECONSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2000

Biography

Vikas EcoTech Limited manufactures and sells specialty additives, and rubber-plastic and polymer compounds in India. It offers specialty additives, including organotin stabilizers, calcium zinc heat stabil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:38
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.