Vikas EcoTech shares gained over 200 per cent over the past one-year period evidently due to the announcement of production-linked incentives to reduce import dependency for various products.
Founded in 1984, Vikas Ecotech is a leading provider of high-end speciality chemicals to buyers across the world.
The Centre introduced PLIs for 14 sectors, of which specialty chemicals is one of them. India is a major importer of specialty chemicals.
In the said period, the small-cap company’s penny shares rose 226.7 per cent to Rs 4.90 per share at Friday’s close.
The company’s current market capitalisation is worth Rs 315.4 crore, NSE data showed.
Stock prices ranging in single digit are known as penny stocks, and they typically have high volatility associated with them.
On the other hand, multibagger stocks are those whose share prices rise exponentially over a short period of time.