A “financially strong company” is one with a solid financial base, marked by consistent profitability, low debt, stable cash flow, and high return on equity (ROE). Such a company can reliably meet its financial obligations, demonstrating a sustainable and healthy business that is well-equipped to handle economic challenges while generating steady profits.
Here is a list of financially strong micro and small-cap stocks under Rs 50 with almost zero debt to keep on the radar.
Gujarat Toolroom Ltd
The company is engaged in a diversified trading business, dealing in a wide range of products including Silver Conductive Ink, Agriculture Commodities, Construction Materials, Fabrics, and Trading Equity Shares. Each segment of our trading operations is managed with a focus on quality, market demand, and efficient logistics, ensuring we maintain a competitive edge in the industry.
Gujarat Toolroom Ltd closed at Rs 12.50 per share on Friday, around 2.5% down from its previous close, with a market cap of Rs 290.08 Crores. In the past year, the stock has declined by 63%. However, in 3 years, Gujarat Toolroom has delivered a stellar return of more than 958%.
The company reported an increase of 156% in Net Profits Year-on-Year, from Rs 2.4 Crores in Q2FY24 to Rs 6.15 Crores in Q2FY25. However, their revenue reported a decrease of 49%, from Rs 157 Crores to Rs 80.33 Crores over the same period. Their Earnings per share reached Rs 1.11, an increase from Rs 0.49 in Q1 FY2024 and Rs 0.43 in Q2 FY2023.
The company reported zero debt as of FY24. A 98% reduction in finance costs quarter-on-quarter indicates the Company’s success in lowering debt and optimizing its capital structure.
DRC Systems India Ltd
DRC Systems India Limited, headquartered in GIFT City, Gandhinagar, provides a comprehensive range of IT services including Learning Management Systems (LMS), Blockchain, AI, Analytics, Automation, Cloud Solutions, Digital Transformation, Mobile and Web applications development.
DRC Systems India Ltd closed at Rs 26.7 apiece on Friday, which was 8.75% down from its previous close, with a market capitalization of Rs 353.76 Crores. In the past year, the stock has delivered a return of 23%, and in the past 5 years, the stock has delivered an impressive return of 529%.
The company reported a decrease of 17.6% in Net Profits Year-on-Year, from Rs 1.08 Crores in Q2FY24 to Rs 0.89 Crores in Q2FY25. However, their revenue reported an increase of 11%, from Rs 9.09 Crores to Rs 10.1 Crores over the same period. Their Earnings per share reached Rs 0.07, an increase from Rs 0.06 in Q1 FY2024 and a decrease from Rs 0.25 in Q2 FY2023.
The company has no debt as of FY24. It has reduced its total debt from Rs 15.15 Crores in FY22 to Zero debt in FY23 and FY24. The DE ratio for FY22 was 2.23 and has been 0 since then.
Contil India Ltd
Contil India Ltd is engaged in the business of exporting foods and groceries. The company exports spices, flour, cereal, pulses, ayurvedic items, oil, utensils, and more. The company is also involved in the shipment of the containers that are loaded for export to Canada and North American Continents.
Contil India Ltd closed at Rs 45 apiece, 8% up from its previous close as of Friday, with a market capitalization of Rs 69.62 Crores. In the past year, the stock has delivered a return of 56%, and in the past 5 years, the stock has delivered a stellar return of 3,047%.
The company reported an increase of 248% in Net Profits Year-on-Year, from Rs 0.29 Crores in Q2FY24 to Rs 1.01 Crores in Q2FY25. Similarly, their revenue reported an increase of 24%, from Rs 7.08 Crores to Rs 8.81 Crores over the same period. Their Earnings per share reached Rs 3.28, an increase from Rs 1.14 in Q1 FY2024 and an increase from Rs 0.40 in Q2 FY2023.
The company has no debt as of FY24. It has reported zero debt for the past 6 years since the year March 19.
Nila spaces Ltd
Since its establishment in 1990, Nila Spaces Ltd has consistently reached new milestones. Over its 31+ years of growth, the company has been involved in turnkey civic urban infrastructure projects while also making significant strides in the real estate sector, focusing on modern lifestyle developments. Through its work with various Government and Semi-Government bodies, Nila Spaces has gained a deep understanding of the scale and scope of major government initiatives like “Housing for All by 2022” and “Smart Cities.”
Nila Spaces Ltd closed at Rs 12 per share, 2% down from its previous close as of Friday, with a market capitalization of Rs 467.55 Crores. In the past year, the stock has delivered an impressive return of 146%, and in the past 5 years, the stock has delivered a stellar return of 1,003%.
The company reported a decline of 68% in Net Profits Year-on-Year, from Rs 11.63 Crores in Q3FY24 to Rs 3.75 Crores in Q3FY25. And their revenue declined by 43%, from Rs 58.42 Crores to Rs 33 Crores over the same period.
The foremost source of finance for the Company has traditionally been internal accruals and borrowings from banks. However, as of FY24, it is debt-free except for a nominal debt of Rs 17.70 Lakhs towards a vehicle loan, which will be repaid in the near future. The company deems it sufficient to address the ongoing business endeavors.
Written By Adhvaitha Nayani
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