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 that have a debt-to-equity ratio of zero in FY24
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 capitalization of Rs 233 crore. On Tuesday, company shares closed at Rs 57.7 per share, down 0.55 % on the exchange.
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 11.31 percent and 12.42 percent, respectively, in FY24.
In FY 22-23, the company experienced a 9.6 percent year-on-year decline in revenue, decreasing from Rs 31 crore to Rs 28 crore in FY 23-24. Despite this, net profit during the same period increased by 16 percent, rising from Rs 18 crore to Rs 21 crore.Coral India Finance & Housing Ltd shares have gained 55% in the last 1 year.
Sri KPR Industries Ltd
Sri KPR Industries Ltd manufactures and sells Asbestos Cement (AC) Pressure Pipes and Couplings. It also deals in Wind Power generation.
Sri KPR Industries Ltd belongs to the penny stock category, having a market capitalization of Rs 69.2 crore. On Tuesday, company shares closed at Rs 34.4 per share, up 1.72 % on the exchange.
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In FY24, the company achieved a debt-to-equity ratio of zero. Additionally, both return on equity (ROE) and return on capital employed (ROCE) showed consistent growth, with ROE reaching 6.70 percent and ROCE reaching 8.80 percent during the same period.
In FY 22-23, the company experienced a slight decline year-on-year decline in revenue, decreasing from Rs 13.83 crore to Rs 13.75 crore in FY 23-24. Despite this, net profit during the same period increased by 140 percent, rising from Rs 3.29 crore to Rs 7.88 crore. Sri KPR Industries Ltd shares have gained 101% in the last 1 year.
BSEL ALGO Ltd
BSEL Infrastructure Realty Ltd deals in Infrastructure activities. Company has a wholly owned subsidiary BSEL Infrastructure Realty FZE which is in the development of real estate & related activities.
BSEL ALGO Ltd belongs to the penny stock category, having a market capitalization of Rs 91.8 crore. On Tuesday, company shares closed at Rs 11.1 per share, down 0.27% on the exchange.
The company maintained a debt-to-equity ratio of zero for the past five years. In FY24, it achieved a 5.49 percent return on equity (ROE) and a 6.23 percent return on capital employed (ROCE).
In FY 22-23, the company experienced a slight declined by 30% year-on-year decline in revenue, decreasing from Rs 40 crore to Rs 28 crore in FY 23-24. Despite this, net profit during the same period declined by 36 percent, rising from Rs 39 crore to Rs 25 crore.
Above mentioned stocks belong to the Penny stocks category with a low market capitalization and a low trading volume. So Individual investors must conduct extensive research before investing in penny stocks, because such penny stocks are volatile in nature, are rarely traded, and a small number of trades may result in a circuit limit.
Written by Omkar Chitnis
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