SEBI hasn’t officially defined microcap stocks, But they are usually considered to be Stocks with market capitalization below Rs 1,000 crore that fall outside the top 500 in terms of market capitalization. Reducing risk in microcap investments involves seeking out companies with minimal debt, so here is a list of microcap stocks fitting that criteria.
Dynacons Systems and Solution Ltd
Dynacons Systems and Solution Ltd provides end-to-end technology and technology related services to corporations across industry verticals. They offer services like Application development and maintenance, cloud computing, break fix services etc. Company has alliances with major vendors like IBM, Lenovo, Apple etc. Currently the company is valued at Rs. 824.42 crores.
On 3rd November, shares of Dynacons Systems and Solution Ltd closed at Rs. 668.10 per share and have given multibagger returns of 140.45 percent in the last 1 year. The company has debt to equity ratio of 0.63 with return on capital employed (ROCE) of 39.18 percent and return on equity (ROE) of 37.08 percent.
Aaron Industries Ltd
Incorporated in 2013 Aaron Industries Limited is mainly engaged in the business of Manufacturing Elevators & Elevators Parts and Steel Polishing. The company has a market capitalization of Rs. 269.63 crores.
On 3rd November, shares of Aaron Industries Ltd closed at Rs. 267 per share and has given 71.26 percent returns in the last 1 year. The company has a debt to equity ratio of 0.56 with return on capital employed (ROCE) of 29.88 percent and return on equity(ROE) of 29.72 percent.
Gandhi Special Tubes
Incorporated in 1959, Gandhi Special Tubes Ltd is engaged in the business of manufacturing of Seamless and Welded Steel Tubes, Nuts and generation of Wind Power. The company has a market capitalization of Rs. 883.63 crores.
On 3rd November, shares of Gandhi Special Tubes Ltd closed at Rs. 718.10 per share and have given returns of 49.05 percent in the last 1 year. The company has total debt free and return on capital employed (ROCE) of 38.27 percent with return on equity (ROE) of 28.75 percent.
Written by: Vinit Israni
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