Shares of Vikas Lifecare (NSE: VIKASLIFE) gained over 4% in intraday on 2nd February after news of acquiring a gas meter technology from Hangzhou Beta Meter Co Dubai.
In just one month, the share price of VIKASLIFE rose by over 65%, so it was quite possible something was happening internally. The stock is now trading at ₹7.10 which is near its 52-week high price of ₹ 7.95.
The petrochemical company after the new business of Gas meters is expected to gain more price appreciation in the coming time. Let us now understand their new business and plan of expansion.
About NSE: VIKASLIFE
Vikas Lifecare Ltd is a petrochemical and recycling company based in New Delhi, India. The company does various things like trading in plastics, making recycled plastics, and other related activities.
Vikas Lifecare has been growing by buying other businesses and adding new products like its new gas meter business.
Recently the company has also changed its logo, which can indicate upcoming changes in the company to do something new.
Why shares of Vikas Lifecare are rising?
VIKASLIFE is expanding its business, and after this news came out in public, its share price started to rise rapidly. Let’s understand their new business acquisition in detail below.
Vikas Lifecare Limited (VLL), with its partner Genesis Gas Solutions Pvt Ltd (GGSPL), has joined hands with Indraprastha Gas Limited (IGL) to create a new venture called IGL Genesis Technologies Limited (IGTL).
Together, they have put about INR 370 crore into this venture. This investment is mainly to get the latest technology for making smart gas meters in India. IGL and GGSPL (backed by VIKASLIFE) shared the costs in a 51:49 ratio.
Through IGTL, VIKASLIFE plays a key role in bringing in cutting-edge technology from Hangzhou Beta Meter Co., Ltd, investing around USD 2.4 million (with half already paid) for manufacturing smart gas meters.
This move is all about upgrading India with the latest in gas meter technology.
Currently, India does not have any such high end gas meter manufacturing unit. VikasLife is also setting up India’s first factory for these smart gas meters through IGTL.
The formation of this factory marks a significant shift towards using smart technology in India’s gas distribution. They plan to start operations by the second quarter of FY 2024-25. These are some reasons why shares of VIKASLIFE were on the rise.
Future Plans of Vikas Lifecare
Besides focusing on smart gas meters, Vikas Lifecare is expanding its horizons beyond its usual business of making and trading polymer and rubber compounds.
It’s now stepping into the consumer market with a range of products in FMCG, Agro, and Infrastructure sectors.
Moreover, Vikas Lifecare is exploring new opportunities in the Industrial and Services sectors, including Tourism, Hospitality, and Entertainment, aiming to grow further and diversify its business.
VIKASLIFE Swing Trading Forecast
| VikasLife Swing Trading Forecast | Target Price (₹) |
|---|---|
| Forecast 1 | ₹10 |
| Forecast 2 | ₹12.10 |
| Forecast 3 | ₹13.90 |
| Forecast 4 | ₹15.25 |
| Forecast 5 | ₹18 |
| Forecast 6 | ₹20.60 |
Conclusion
The new Gas Meter business can prove to be turn around point for NSE:VIKASLIFE. From a long time Vikas Lifecare stock was trading in a small range. If the company manages everything properly, shares of this company can double its value from ₹7 to ₹20 in coming time.
As we are at the end of the article, for long term investors, you can check Vikas Lifecare forecast upto 2030.
