Being debt-free is one of the most important factors that retail investors lean towards as it implies a comparatively less financial burden about the short-term interest obligations of a company.
Listed below are three small-cap stocks under ₹200 with ‘zero’ debt that one should add to their watchlist:
Speciality Restaurants Limited
With a market capitalization of Rs 900 crores, the stocks of Speciality Restaurants Limited, one of the largest fine-dining restaurant chains in India, closed at Rs 186.80 on Friday, gaining around 1.20 percent as compared to the previous closing levels of Rs 184.65 apiece.
During the recent financial years, the company has been successful in increasing the basic business indicators such as operating revenues and net profits. The former recently moved from Rs 252 crores during FY21-22 to Rs 374 crores during FY22-23, and, the latter, during the same period, shifted drastically from Rs 14 crores to Rs 96 crores.
In addition, the company’s debt-to-equity ratio, one of the well-tracked leverage metrics, has stayed at a ‘nil’ rate for the past few financial years.
Coming onto the profitability ratios of the company, the return on equity (RoE) as well as return on capital employed (RoCE) were reported at healthy numbers during FY22-23 at 34.99 percent and 17.52 percent respectively. Moreover, the net profit margin was reported at 25.79 percent.
Gujarat Themis Biosyn Limited
With a market capitalization of Rs 1,371.51 crores, the stocks of Gujarat Themis Biosyn Limited, manufacturing and selling finished API products by a fermentation process, closed at Rs 188.80 on Friday, gaining around 0.20 percent as compared to the previous closing levels of Rs 188.45 apiece.
During the recent financial years, the company has been successful in increasing the basic business indicators such as operating revenues and net profits. The former recently moved from Rs 114 crores during FY21-22 to Rs 148 crores during FY22-23, and, the latter, during the same period, shifted from Rs 43 crores to Rs 57 crores.
In addition, the company’s debt-to-equity ratio, one of the well-tracked leverage metrics, has stayed at a ‘nil’ rate for the past few financial years.
Coming onto the profitability ratios of the company, the return on equity (RoE) as well as return on capital employed (RoCE) were reported at healthy numbers during FY22-23 at 38.86 percent and 51.41 percent respectively. Moreover, the net profit margin was reported at 38.91 percent.
Indian Energy Exchange Limited
With a market capitalization of Rs 13,727.18 crores, the stocks of Indian Energy Exchange Limited, providing an automated platform for carrying out trading in electricity units, closed at Rs 152.75 on Friday, slipping around 3.10 percent as compared to the previous closing levels of Rs 157.65 apiece.
During the recent financial years, the company, due to increased cost pressure, faced a dip in the basic business indicators such as operating revenues and net profits. The former recently moved down from Rs 431 crores during FY21-22 to Rs 400 crores during FY22-23, and, the latter, during the same period, reduced from Rs 307 crores to Rs 292 crores.
In addition, the company’s debt-to-equity ratio, one of the well-tracked leverage metrics, has stayed at a ‘nil’ rate for the past few financial years.
Coming onto the profitability ratios of the company, the return on equity (RoE) as well as return on capital employed (RoCE) were reported at healthy numbers during FY22-23 at 38.27 percent and 46.38 percent respectively. Moreover, the net profit margin of the company, due to the monopoly status, was reported at a whopping 73 percent.
Written by Amit Madnani
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