Investing in strong small-cap stocks with low debt can be a smart way to grow your money, especially if you’re okay with a little more risk. These companies are usually in their early stages and have smaller market sizes, but they often have good business plans, solid financial health, and capable leadership.
Having low debt means the company doesn’t owe a lot of money, so it’s not weighed down by interest payments. This makes it easier for the business to survive tough times and keep growing. By choosing small companies that are financially strong and have low debt, investors have a better chance of earning good returns over the long term while keeping risks under control.
Here is the list of stocks to look out for:
Inox India Ltd
Inox India Ltd is a prominent manufacturer specializing in cryogenic storage, distribution, and re-gasification solutions for industrial gases and LNG. Renowned for its engineering expertise, it serves sectors such as industrial gas, LNG, and scientific research. The company supplies turnkey solutions and custom-designed equipment to both Indian and global markets.
With a market capitalization of Rs. 10,257 crores, the company’s revenue has risen by 14.58 percent from Rs. 296 crores to Rs. 340 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 53 crore to Rs. 61 crore during the same period.
Inox India Ltd has an impressive Return on Equity (RoE) of 29.0 percent and a Return on Capital Employed (RoCE) of 38.0 percent. Furthermore, the company’s debt-to-equity ratio is 0.05.
Shilchar Technologies Ltd
Shilchar Technologies Ltd. is an Indian company, specializing in the manufacturing of various types of transformers, including power, distribution, and electronics & telecom transformers. The company began with R-core and Ferrite transformers and has since expanded to produce large power and distribution transformers, serving sectors such as utilities, renewable energy, and telecommunications.
With a market capitalization of Rs. 5,461 crores, the company’s revenue has risen by 48.38 percent from Rs. 107 crores to Rs. 159 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 24 crore to Rs. 41 crore during the same period.
Shilchar Technologies Ltd has an impressive Return on Equity (RoE) of 52.9 percent and a Return on Capital Employed (RoCE) of 71.3 percent. Furthermore, the company’s debt-to-equity ratio is 0.
Transformers & Rectifiers India Ltd
Transformers & Rectifiers India Ltd is one of India’s leading transformer manufacturers. The company operates three modern manufacturing plants and produces a wide range of transformers, including power, distribution, furnace, and specialty varieties. It serves domestic and international markets, holding substantial market shares in power and furnace transformers.
With a market capitalization of Rs. 15,098 crores, the company’s revenue has risen by 64 percent from Rs. 322 crores to Rs. 529 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 21 crore to Rs. 67 crore during the same period.
Transformers & Rectifiers India Ltd has an impressive Return on Equity (RoE) of 23.4 percent and a Return on Capital Employed (RoCE) of 28.0 percent. Furthermore, the company’s debt-to-equity ratio is 0.23.
Action Construction Equipment Ltd
Action Construction Equipment Ltd (ACE) is a leading Indian manufacturer in the construction and material handling equipment space. It offers products like cranes, loaders, forklifts, and heavy equipment. The company is recognized for its indigenous manufacturing capabilities and caters to sectors such as infrastructure, construction, and agriculture.
With a market capitalization of Rs. 12,635 crores, the company’s revenue has fallen by 11.19 percent from Rs. 734 crores to Rs. 652 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 84 crore to Rs. 98 crore during the same period.
Action Construction Equipment Ltd has an impressive Return on Equity (RoE) of 28.6 percent and a Return on Capital Employed (RoCE) of 40.1 percent. Furthermore, the company’s debt-to-equity ratio is 0.01.
Netweb Technologies India Ltd
Netweb Technologies India Ltd is a specialized IT solutions provider focusing on high-performance computing, data center solutions, and cloud infrastructure. The company delivers advanced computing products, servers, and storage systems to enterprise and research clients. It serves sectors ranging from education and research to government and private enterprises.
With a market capitalization of Rs. 13,171 crores, the company’s revenue has risen by 102 percent from Rs. 149 crores to Rs. 301 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 15 crore to Rs. 30 crore during the same period.
Netweb Technologies India has an impressive Return on Equity (RoE) of 23.9 percent and a Return on Capital Employed (RoCE) of 32.4 percent. Furthermore, the company’s debt-to-equity ratio is 0.01.
Written by Sridhar J
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