Vikas Lifecare, a polymer manufacturer, has made some bizarre acquisitions recently for over double its net worth!
None of these businesses are related to each other or its polymer business. They are as diverse as they get! Here’s a glimpse.
It acquired 50% of this Dubai-based event management firm that will host the Miss World Competition. No, the contestants won’t be asked to manufacture polymer.
It bought a 60% stake in the biggest nightclub in the Middle East and Asia. We can’t confirm if investors will get free entry.
In the past, it has ventured into cashew manufacturing, food production, smart metre manufacturing and even real estate!
The management says it wants to diversify its business. But these wild acquisitions have led to sluggish profits and abysmal capital efficiency.
Despite the lacklustre financials, its share price has surged recently. In January 2024, the stock grew an impressive 52%.
Don’t let the acquisitions dazzle you. Do the due diligence before investing. Also, the recent surge in share price might be because of the present bull run.