Keeping the benefits of financial leverage aside, the companies with zero debt don’t carry the burden to pay off the interest and principal commitments thereby using the funds to allocate to productive places and generate returns. Such companies, along with stable financial performance, attract the attention of Foreign Institutional Investors (FIIs).
Listed below are 3 Debt-free Small-cap stocks that witnessed a consistent increase in FII holdings in the past couple of years:
Triveni Turbine Limited:
Triveni Turbine Limited is a company based in India that supplies power-generating equipment and solutions. The company offers steam turbines, related spare parts, and other aftermarket services.
On Friday, the company’s shares closed at Rs 423, gaining around 2.20 percent as compared to the previous closing price of Rs 413.80. It has a market capitalization of Rs 13,436 crores which includes the company under the ‘small-cap’ category. The company has a history of registering a ‘zero’ debt-to-equity ratio taking a look at the past years.
The Foreign Institutional Investors (FIIs), showing confidence in the company, increased their stake from 16.40 percent during FY21-22 to 24.38 percent in FY22-23 representing an increase of 7.98 percent.
Finolex Cables Limited:
Finolex Cables Limited is a company dealing in electronic components. The operating segments of the company include Communication cables, Electrical cables, etc.
On Friday, the company’s shares closed at Rs 872, gaining around 2.90 percent as compared to the previous closing price of Rs 847.90. It has a market capitalization of Rs 13,318 crores which includes the company under the ‘small-cap’ category. The company has a history of registering a ‘zero’ debt-to-equity ratio taking a look at the past years.
The Foreign Institutional Investors (FIIs), showing confidence in the company, increased their stake from 9.36 percent during FY21-22 to 10.78 percent in FY22-23 representing an increase of 1.42 percent.
Mahanagar Gas Limited:
Mahanagar Gas Limited is a natural gas distribution company based in India operating with the help of its Gas Distribution Network of pipelines. The company distributes Piped Natural Gas (PNG) for commercial, household use. It also distributes Compressed Natural Gas (CNG) used in vehicles.
On Friday, the company’s shares closed at Rs 1,039, trading flat as compared to the previous closing price of Rs 1,040.75. It has a market capitalization of Rs 10,271 crores which includes the company under the ‘small-cap’ category. The company has a history of registering a ‘zero’ debt-to-equity ratio taking a look at the past years.
The Foreign Institutional Investors (FIIs), showing confidence in the company, increased their stake from 24.98 percent during FY21-22 to 30.95 percent in FY22-23 representing an increase of 5.97 percent.
Written by Amit Madnani
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