While performing a fundamental analysis of stocks, it is important to look at the borrowings of the company. A debt-free company is generally categorized as a less risky investment option for its investors as they are less likely to go bankrupt. Along with it, the earnings of the company should also be considered to learn about the financial health of the company.
Here are 3 multibagger stocks with zero debt on their balance sheet to add to your watchlist:
Mazagon Dock Shipbuilders Limited
The shares of Mazagon Dock Shipbuilders gained more than 3 percent and were trading at Rs 767 on Thursday. In the past six months, the stock has delivered a multibagger return of 182 percent.
In Q3FY23, the company posted a total revenue of Rs 815.91 Crore and an increase from Rs 1,552.5 Crore in the same period the previous year. Their net profit jumped by 69 percent to Rs 337.26 Crore up from Rs 199.94 Crore Year on Year.
The company has a market capitalization of Rs 15,464 Crore and a dividend yield of 1.14. It is also an undervalued company as its TTM PE is 17.19 compared to the Sector PE of 20.14. Another strength of the company is that it has zero debt on its balance sheet.
Mazagon Dock Shipbuilders Limited manufactures warships and submarines for the Indian Navy and offshore platforms and associated support vessels for offshore oil drilling. It also builds tankers, cargo bulk carriers, passenger ships, and ferries.
Shanthi Gears Limited
The shares of Shanthi Gears were trading marginally lower at Rs 327 levels on Thursday. However, in the span of a year, the scrip has delivered a multibagger return of 102 percent.
The company reported total revenue of Rs 114.65 Crore in Q3FY23, up from Rs 94.71 Crore in the same period the previous year. Their net profit increased by 27 percent year on year to Rs 17.54 crore from Rs 13.77 crore.
The small-cap company has a market capitalization of Rs 2,554 Crore and a dividend yield of 0.75. The promoters hold a 70.47 percent stake with zero shares pledged. In addition to that, it is a debt-free company.
Shanthi Gears Ltd is in the business of designing, manufacturing, supplying, and servicing gears and gearboxes. The company is a subsidiary of Tube Investments of India Limited which is a Murugappa group company.
Jyoti Resins and Adhesives Limited
The shares of Jyoti Resins and Adhesives were trading marginally lower at Rs 1,112 levels on Thursday. The multibagger stock has delivered a return of 195 percent in the span of a year.
The company is yet to announce its Q3 results. In Q2FY23, its revenue stood at Rs 63 crores and its net profit was Rs 9 crores. The small-cap company with a market capitalization of Rs 1,335 crore has Zero debt on its balance sheet.
Jyoti Resins and Adhesives Limited is an India-based company that is engaged in the business of manufacturing synthetic wood adhesives under its brand name EURO7000.
Written by Anoushka Roy
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