Penny stocks are relatively inexpensive, They have insignificant market capitalizations and lack liquidity in their stocks.
Such stocks are more subject to market volatility. Many investors avoid these stocks because of their weak fundamentals and unreliable businesses.
A debt ratio of zero suggests that the company does not finance additional operations by borrowing at all.For shareholders, this means that the company is less likely to fail during an economic downturn.
Here are three penny stocks with a debt-to-equity ratio of zero over the last five years.
Coral India Finance & Housing Ltd
Coral India Finance & Housing Ltd is primarily involved in the building, development, and management of properties, as well as investments.
Coral India Finance & Housing Ltd belongs to the penny stock category, having a market capitalisation of Rs 143 crore. The company’s shares were trading at Rs 35.65 per share on July 21, up 0.14 percent from the previous trading session.
The company has a debt-to-equity ratio of zero over the last five years. Return on equity (ROE) and return on capital employed (ROCE) for the firm have been consistently growing, with ROE at 12.24 percent and 14.0 percent, respectively, in FY23.
Revenue grew by 7 percent year on year to Rs 29 crore in FY 22-23 from the previous year, while net profit improved from Rs 17 crore in FY 21-22 to Rs 18 crore in FY 22-23.
Oswal Agro Mills Ltd
Oswal Agro Mills Ltd is a company that trades/develops real estate, trades items, and loans its excess cash as interest bearing inter-corporate deposits.
Oswal Agro Mills Ltd belongs to the penny stock category, with a market capitalization of Rs 386 crore. The company’s shares were trading at Rs 28.80 per share on July 21, down 0.52 percent from the previous trading session.
The company has a debt-to-equity ratio of zero over the last five years. In FY23, the company’s return on equity (ROE) and return on capital employed (ROCE) were 2.86 percent and 1.93 percent, respectively.
In FY 22-23, sales jumped by 145 percent year on year to 27 crore, while net profit increased by 350 percent to Rs 9 crore.
Jullundur Motor Agency Delhi Ltd.
Jullundur Motor Agency Delhi Ltd is one of the major vehicle Spare Parts Distribution firms, specialising in the trade and distribution of vehicle parts, accessories, and gasoline supplies.
Jullundur Motor Agency Delhi Ltd belongs to the penny stock category, with a market capitalization of Rs 164 crore. The company’s shares were trading at Rs 71.80 per share on July 21, down 1.31 percent from the previous trading session.
The company has a debt-to-equity ratio of zero over the last five years. In FY23, the company’s return on equity (ROE) and return on capital employed (ROCE) were 13.21 percent and 17.65 percent, respectively.
Revenue grew by 15 percent year on year to 503 crore in FY 22-23 from the previous year, while net profit improved by 12 percent to Rs 27 crore.
Written by Omkar Chitnis
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