Penny stock hits 10% upper circuit after Co. plans to expand its business into logistics

During Wednesday’s trading session, the shares of this company engaged in the business of manufacturing & selling specialty chemicals and fine chemicals hit a 10 percent upper circuit at Rs. 67.36 on BSE, after expanding into the logistics business through a strategic partnership. 

With a market cap of Rs. 83.6 crores, the shares of Eiko Lifesciences Limited opened in the green at Rs. 121.25, as against its previous closing price of Rs. 115.5. 

What’s the News: 

Eiko Lifesciences Limited (ELL), through its subsidiary EikoVivify Logistics Pvt. Ltd. (EVL), entered into a long-term service contract with S J Logistics (India) Ltd. (SJL), according to its latest BSE filings. 

This partnership marks a significant milestone in EVL’s expansion into container management solutions, serving a wide range of industries, including hazardous and non-hazardous chemicals. 

By diversifying into shipping, logistics, and container management solutions, the company aims to strengthen backward and forward integration, reduce inherent business risks, and drive sustainable growth for both EVL and SJL. 

Under this strategic collaboration, EVL has acquired around 1,000 containers of various types and sizes, including dry containers, flat rack containers, open-top containers, and refrigerated containers. 

Further, as part of its growth strategy, EVL plans to diversify its operations by venturing into leasing, renting, and managing shipping containers for logistics, storage, and transportation. 

It plans to source containers both domestically and internationally, provide leasing solutions to transport entities and offer comprehensive maintenance and management services for efficient container operations. 

About the Subsidiary: 

EikoVivify Logistics Pvt. Ltd., a subsidiary of Eiko Lifesciences Limited, is a dynamic player in the container management sector and has been established with a joint investment structure. 

Eiko Lifesciences Limited holds a 51 percent stake, while Vivify Wealth Management LLP holds the remaining 49 percent stake. The JV partners have committed to investing Rs. 100 crores over a three-year period, and this investment will be utilized to drive growth and expansion. 

Leveraging ELL’s expertise as a leader in specialty chemicals, pharmaceutical intermediates, and APIs, EVL delivers tailored solutions to meet the diverse needs of the logistics and supply chain industry. 

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About the Partner Company: 

S J Logistics (India) Ltd. is a globally renowned logistics service provider with over two decades of industry experience. Specializing in freight forwarding, transportation, warehousing, Non-Vessel Operating Common Carrier (NVOCC) services, and customs clearance, SJL operates on an asset-light model. This approach allows the company to partner with an extensive network, delivering dependable, efficient, and timely freight solutions worldwide. 

Financials: 

Eiko Lifesciences reported a significant growth in consolidated revenue from operations, experiencing a year-on-year increase of nearly 21 percent, rising from Rs. 6.4 crores in Q2 FY24 to Rs. 7.74 crores in Q2 FY25. 

During the same period, the company’s net profit increased from Rs. 0.12 crores to Rs. 0.21 crores, representing a growth of around 75 percent YoY. 

Stock Performance: 

The stock has delivered positive returns of nearly 15.4 percent of returns in one year, as well as around 35.2 percent returns in the last six months. So far in 2024, the shares of Eiko Lifesciences have given positive returns of about 8.3 percent. 

About the Company: 

Incorporated in 1977, Eiko LifeSciences Limited, formerly known as Narendra Investments (Delhi) Limited, is primarily engaged in the business of manufacturing Speciality and Fine Chemicals. 

Written by Shivani Singh 

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