Penny stock below Rs 5: Company secures fire retardant materials order worth Rs 28 million from Polycab India Ltd

Vikas Ecotech Limited, a prominent manufacturer of specialty materials, has announced a significant order from Polycab India Limited, a leading player in the wire and cable industry. The New Delhi-based company secured a single order for 400 metric tonnes of fire-retardant materials, specifically Aluminium Trihydrate (ATH), valued at approximately Rs 28 million. This substantial order is slated for supply during the second quarter of the fiscal year 2025–26, with the entire delivery expected to be completed within a three-month timeframe, highlighting Vikas Ecotech's robust operational capabilities and dependable supply chain.

This repeat order from Polycab underscores the strong confidence in Vikas Ecotech's product quality, technical reliability and dedication to delivering sustainable and safety-enhancing specialty materials for vital applications within the wire and cable sector. Such developments solidify Vikas Ecotech's standing as a preferred partner in the expanding fire-retardant chemicals market. The growing demand for fire retardant materials, driven by stricter safety regulations and increased applications across construction, automotive and wire & cable industries, positions Vikas Ecotech favourably to capitalise on the Indian fire-retardant chemicals market, which is projected to grow at a CAGR exceeding 6 per cent in the coming years.

About Polycab India Limited

Polycab India Limited stands as the nation's largest and most trusted integrated manufacturer of wires and cables, commanding a significant 25–27 per cent market share in the organised sector. With over 25 advanced manufacturing facilities across India, Polycab produces a comprehensive range of products, including power, control, instrumentation, solar and defence-grade cables, serving various sectors from infrastructure to renewable energy. The company has also diversified into Fast-Moving Electrical Goods (FMEG) like fans, LED lighting and switches and holds a strong presence in Engineering, Procurement and Construction (EPC) for power distribution and rural electrification projects, solidifying its role in India's infrastructure development.

About Vikas Ecotech Ltd

Vikas Ecotech Ltd, a New Delhi-based company, specialises in specialty polymers & specialty additives and chemicals for the plastics & rubbers industries, serving diverse sectors including agriculture, infrastructure and automotive. Notably, it stands as India's sole manufacturer of Organotin, a heat stabiliser for vinyl applications, with unique in-house R&D capabilities and is among a select few globally possessing this comprehensive manufacturing expertise. The company has recently diversified its portfolio by acquiring a plasticiser manufacturing business and venturing into infrastructural steel supply during FY 2021-22, in addition to expanding into consumer-focused products. Vikas Ecotech's securities are listed on both the BSE and NSE.

According to Quarterly Results, the net sales increased by 43 per cent to Rs 102.61 crore and net profit increased by 87 per cent to Rs 4.30 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 46 per cent to Rs 377.67 crore and net profit increased by 149 per cent to Rs 16.98 crore in FY25 compared to FY24.

The promoters of the company hold 10.65 per cent stake, FIIs hold 0.02 per cent stake and public shareholders hold 89.33 per cent stake. The company has a market cap of over Rs 400 crore. The stock is up by 12.3 per cent from its 52-week low of Rs 2.12 per share.

Disclaimer: The article is for informational purposes only and not investment advice.