A significant metric to take a look at before investing in stocks is the debt-to-equity ratio. The amount of capital that has been raised for the operation of a business can be measured by the debt-to-equity ratio. Additionally, it signifies a company’s stability and capacity to raise more money in order to grow.
The 4 small-cap stocks with the lowest debt to equity ratio and multibagger returns are listed below.
Mold Tek Technologies Ltd.
Mold-Tek Technologies Ltd (MTTL) provides Engineering and Technology Solutions across the globe. The company is specialised in providing Civil & Mechanical Engineering structural designs.
The company has zero debt-to-equity ratio as of FY23. and it is a small-cap company with a market capitalization of ₹ 988 crore. The company’s shares were trading at ₹ 348 apiece on June 2nd.
In the past year, the company’s share price increased from ₹ 104.90 to current levels, giving multibagger returns of 230.59%. Therefore, if an investor purchased 1 lakh shares of the company in the previous year, their holdings would now be worth 3.30 lakhs!
As per company financials,Operating revenues significantly increased by 49 percent from ₹ 98 crores during FY 21-22 to ₹ 146 crores in FY 22-23. Keeping the same time frame, PAT numbers have significantly increased by 123 percent, from ₹ 13 crores to ₹ 29 crores.
Permanent Magnets Ltd.
Permanent Magnets Limited (PML) is engaged in manufacturing and exporting of Magnetic assemblies, shunt assemblies & brass terminals, Alnico Cast.
The product range of the company includes Mu Metal Components,Standard Magnetic Assemblies,Custom Magnetic Assemblies,Alnico Magnets,Ferrite Magnets and Cow Magnets.
The small-cap company with a market valuation of Rs. 872 crore, the company’s debt-to-equity ratio as of FY23 is 0.05. The company’s shares were trading at ₹ 1,014.20 apiece on June 2nd.
In the past year, the company’s share price increased from ₹ 306.10 to current levels, giving multibagger returns of 235.05%. Therefore, if an investor purchased 1 lakh shares of the company in the previous year, their holdings would now be worth 3.35 lakhs!
A quick review of their financials reveals that operational revenues substantially grew from 129 crores in FY 21–22 to 182 crores in FY 22–23, a 41 percent rise. PAT figures have considerably grown by 53%, from 19 crores to 29 crores, while maintaining the same time frame.
Ion Exchange (India) Ltd.
Ion Exchange India Ltd was established in 1964 and is a pioneer in water and environment management, The company works in the chemical, Engineering, and Consumer Products business. it caters to domestic and international markets.
Small-cap firm with a market valuation of 5,625 crore, the company’s debt-to-equity ratio as of FY23 is 0.06. The company’s shares were trading at ₹ 3,835.30 apiece on June 2nd.
In the past year, the company’s share price increased from ₹ 1,968.60 to current levels, giving multibagger returns of 107.55%. Therefore, if an investor purchased 1 lakh shares of the company in the previous year, their holdings would now be worth 2.07 lakhs!
Having a quick walkthrough of their financials, operating revenues significantly increased by 26 percent from ₹ 1,576 crores during FY 21-22 to ₹ 1,989 crores in FY 22-23. Keeping the same time frame, PAT numbers have significantly increased by 20 percent, from ₹ 161 crores to ₹ 194 crores.
Bajaj Steel Industries Ltd.
Bajaj Steel Industries Ltd is engaged in the manufacturing of Cotton Baling and Pressing machinery. The company is involved in the export of premier products like Double Roller Ginning Machines, Cotton Boll Openers, and Cotton Baling Presses. The company has a presence in domestic and international markets.
The company’s debt-to-equity ratio stands at 0.06 as of FY23. and it is a small-cap company with a market capitalization of ₹ 689 crore. The company’s shares were trading at ₹ 1,325 apiece on June 2nd.
In the past year, the company’s share price increased from ₹ 527.10 to current levels, giving multibagger returns of 149.60%. Therefore, if an investor purchased 1 lakh shares of the company in the previous year, their holdings would now be worth 2.49 lakhs!
A glance review of their financials reveals that operational revenues greatly grew from 436 crores in FY 21–22 to 533 crores in FY 22–23, a 22 percent rise. PAT numbers have considerably grown by 86 percent, from 36 crores to 67 crores, while maintaining the same time period.
Written by Omkar C
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