A debt is any financial obligation that the company has to repay within a specified time period. For extending the capital, the creditor generally charges an additional sum of money which is known as interest. The debt is seen as a risk factor as the non-payment can also lead to bankruptcy of the company.
Therefore, many investors look to invest in companies which have zero or low debt as compared to their peers as the risk associated with it is less. Here are the top four stocks which not only have lower debt but have also delivered multibagger returns:
Fineotex Chemical Ltd
The shares of the company were up by 5.9 per cent and trading at Rs 398 levels in the early hours on Tuesday. In the month the stock has zoomed by approximately 45 per cent. So far this year in 2022 the shares have delivered a multibagger return of 189 per cent YTD.
A year ago the stock was trading at Rs 124 a piece on NSE. From there it has scaled up to the current levels logging a multibagger return of more than 220%.
In Q1FY23, the company reported total revenue of Rs 135 crores up from Rs 63 crores in the same period a year ago. Their net profit for the period stood at Rs 20 crores up from Rs 9 crore in Q1FY22. The company has a low debt with a Debt to Equity ratio of 0.01.
Fineotex Chemicals Ltd is engaged in the business of manufacturing auxiliaries and speciality chemicals for textiles, construction, water treatment, fertiliser, leather, and paint industries, Adhesives and others.
West Coast Paper Mills Ltd
The shares of the paper company were trading 2.9 per cent higher at Rs 582 levels in the early hours of Tuesday. In a month, the stock prices have surged by more than 8 per cent and so far this year it has delivered a multibagger return of 147 per cent.
A year ago the stock was trading at Rs 231 a piece on NSE. From there it has scaled up to the current levels logging a multibagger return of more than 151%.
In Q1FY23, the company reported total revenue of Rs 1,114 crores up from Rs 537 crores in the same period a year ago. Their net profit for the period stood at Rs 208 crores up from Rs 39 crore in Q1FY22. The company has a low debt with a Debt to Equity ratio of 0.26.
West Coast Paper Mills Ltd is one of the oldest and the largest producers of paper for printing, writing, and packaging in India. It is also in the business of manufacturing optical fibre cables.
New Delhi Television Ltd
The shares of the media company were locked in an upper circuit of 5 per cent at Rs 443 on Tuesday morning. In a month, the stock prices have surged by more than 47 per cent and so far this year it has delivered a multibagger return of 285 per cent.
A year ago the stock was trading at Rs 73 a piece on NSE. From there it has scaled up to the current levels logging a multibagger return of more than 507%.
The revenue of the company in Q1FY23 stood at Rs 107 crores up from Rs 85 crores which they earned in the same period a year ago. Their net profit stood at Rs 25 crore in the period as compared to Rs 16 crore in Q1FY22. The company has a low debt with a Debt to Equity ratio of 0.04.
New Delhi Television Ltd (NDTV) is an Indian news media company focusing on broadcast and digital news publications. It is in the bid to be acquired by the Adani group.
Andhra Paper Ltd
The shares of the paper company were trading 1.4 per cent higher at Rs 480 levels on Tuesday morning. In a month, the stock prices have surged by more than 10 per cent and so far this year it has delivered a multibagger return of 121 per cent.
A year ago the stock was trading at Rs 230 a piece on NSE. From there it has scaled up to the current levels logging a multibagger return of more than 109%.
In the first quarter of FY23, the company reported total revenue of Rs 452 crores up from Rs 258 crores which they earned in the same period a year earlier. Their net profit stood at Rs 84 crores in the period as against Rs 26 crores in Q1FY22. Their debt-to-equity ratio is low at 0.05.
Andhra Paper Limited is one of the largest integrated paper and pulp manufacturers in India. It produces writing, printing, and copier papers which are sold in both domestic as well as foreign markets. It is the subsidiary of West Coast Paper Mills Ltd.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
