Investors should focus on micro-cap stocks that consistently reduce debt because it reflects better financial management and lowers default risk. For investors, this means safer growth opportunities, while for the industry, it highlights improving financial health and more sustainable business models among smaller companies.

1. Fabtech Technologies Cleanrooms

Incorporated in 2015, is a leading provider of turnkey engineering solutions for cleanrooms in the pharmaceutical, biotech, and healthcare sectors. It specializes in manufacturing pre-engineered modular panels, doors, and related components like HEPA filters, ensuring compliance with global standards such as ISO and FDA. 

With a market capitalisation of Rs. 457 crores, it fell to Rs. 371, hitting a low of up to 3.13 percent from its previous closing price of Rs. 383. The company’s debt has declined sharply from Rs. 8 crore in March 2022 to Rs. 6 crore in March 2023 (‑25% YoY), remained flat in March 2024, and further fell to just Rs. 1 crore in March 2025 (‑83% YoY). With a debt-to-equity ratio of only 0.01, the balance sheet is almost debt-free, reflecting strong deleveraging and sound financial health.

2. Megatherm Induction

Established in 2010, is a prominent manufacturer of induction heating and melting equipment using electric induction technology for the steel and metal industries. It offers a wide range of products including induction furnaces, heating systems, transformers, and turnkey solutions for melt shops, serving domestic and international clients with after-sales support. 

With a market capitalisation of Rs. 519 crores, it fell to Rs. 275.50, hitting a low of up to 0.09 percent from its previous closing price of Rs. 275.75. The company’s debt has steadily reduced from Rs. 43 crore in March 2023 to Rs. 36 crore in March 2024 (‑16% YoY) and further to Rs. 33 crore in March 2025 (‑8% YoY). With a debt-to-equity ratio of 0.23, leverage remains moderate and under control, indicating improving financial stability though scope for further deleveraging exists.

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3. Dutron Polymers

Founded in 1962 as part of the Dutron Group, is a pioneer in India’s plastic pipe industry, renowned for manufacturing PVC hose pipes, HDPE pipes, fittings, and corrugated pipes. It caters to diverse applications in irrigation, drainage, chemicals, plumbing, and gardening, with a focus on durable, flexible solutions for civil and industrial needs.

With a market capitalisation of Rs. 70.80 crores, it fell to Rs. 116.50, hitting a low of up to 1.64 percent from its previous closing price of Rs. 118.45. The company’s debt has consistently declined from Rs. 13.3 crore in March 2022 to Rs. 9.6 crore in March 2023 (‑28% YoY), then to Rs. 6.2 crore in March 2024 (‑35% YoY), and further down to Rs. 4.7 crore in March 2025 (‑24% YoY). With a debt-to-equity ratio of 0.16, leverage levels are low, highlighting prudent debt management and strengthening financial resilience.

Written By Fazal Ul Vahab C H

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