The debt-to-equity ratio is an important indicator to consider when investing in any company’s.The debt-to-equity ratio quantifies the amount of capital raised for the operations of a company. Furthermore, it signifies a company’s stability and ability to raise additional capital in order to grow.
The debt to equity ratio compares an organisation’s liabilities to its shareholders equity,High ratios signifies to lenders that a company is potentially too risky to invest in,And different types of businesses require different levels of debt and capital to operate and scale.
Here are three Multibagger paper stocks with low Debt to Equity ratio
Kokuyo Camlin Ltd
Kokuyo Camlin Limited is engaged in the manufacture and trade in scholastic products, writing instruments, notebooks and other stationery products.
Kokuyo Camlin is a small-cap company with a market capitalization of Rs 1,542 crore. On Thursday, the company shares were trading at Rs 153.75 per share, up 2.46 percent from the previous close. The company has a debt-to-equity ratio of 0.21.
The company’s stock has gained 124 percent return in six months and 126 percent over a year. A shareholder’s investment of Rs. 1 lakh in the business would be worth Rs. 2.24 lakhs after a half-year and Rs 2.26 lakhs after a year.
The company’s sales increased by 20 percent from 196 crore in Q1FY23 to Rs 235 crore in Q1FY24.Additionally, its net profit increased by 125 percent from Rs 8 crore in Q1FY23 to Rs 18 crore in Q1FY24.
Kuantum Papers Ltd
Kuantum Papers Ltd manufactures and sells writing and printing paper.It is also one of India’s largest fully integrated Agro-based paper factories, dedicated to producing wood-free, high-quality maplitho and speciality paper.
Kuantum Papers has a market capitalization of Rs 1,587 crore and is a small-cap stock. On Thursday, the company’s shares were trading at Rs 182, down 1.62 percent from the previous close. The company has a debt-to-equity ratio of 0.5.
In the past year, the company’s share price increased from Rs 80.50 to current levels, giving multibagger returns of 127 percent . As a result, if an investor bought 1 lakh firm shares in the previous year, their shares are now worth 2.27lakhs!
The company’s sales increased by 14 percent from 274 crore in Q1FY23 to Rs 312 crore in Q1FY24.Additionally, its net profit increased by 270 percent from loss of Rs 35 crore in Q1FY23 to profit of Rs 65 crore in Q1FY24.
Magnum Ventures Ltd
Magnum Ventures Ltd is engaged in the business of trading and manufacturing of papers.And is one of the largest writing and printing paper and duplex paper printing concern in the Northern region of India.
Magnum Ventures is a micro-cap stock with a market capitalization of Rs 155 crore. The company’s shares were trading at Rs 32.45 apiece on Thursday, down 1.96 percent from the previous close. The company has a 0.32 debt-to-equity ratio.
In the past year, the company’s share price increased from Rs 12.30 to current levels, giving multibagger returns of 163 percent . As a result, if an investor bought 1 lakh firm shares in the previous year, their shares are now worth 2.63 lakhs!
As per company financials, Operating revenues significantly increased by 40 percent from Rs 328 crores during FY 21-22 to Rs 460 crores in FY 22-23. Keeping the same time frame, Net profit has significantly increased by 1300 percent, from Rs 5 crores to Rs 70 crores.
Written by Omkar Chitnis
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