The capital used in the business that is contributed by creditors, shareholders, or owners is measured by the debt-to-equity ratio. The debt-equity ratio, to put it simply, is a ratio of the total amount of long-term debt and equity capital in the company.
Here are three smart meter stocks with a Debt to Equity ratio of less than 1, indicating that the companies have less debt to continue their operations:
Vikas Lifecare Limited
With a market capitalisation of Rs. 827.3 crores, the stock surged 1.44 percent on BSE to Rs. 4.93 in the trading session of Friday.
In terms of return ratios, Vikas Lifecare has reported a return on equity (RoE) of 4.46 percent, and a return on capital employed (RoCE) of 5.86 percent.
The company’s debt-to-equity ratio is currently at 0.07, reflecting a low debt and suggesting a relatively lower level of financial risk throughout the financial year.
The company reported a 7 percent YoY decrease in revenue from operations, falling from Rs. 99 crores in Q1 FY24 to Rs. 92 crores in Q1 FY25. Concurrently, its net profit also saw a decline from Rs. 11.7 crore to a loss of Rs. 2.91 crore over the same period.
The stock delivered positive returns of around 2.1 percent in the last one year, but nearly 2 percent of negative returns year-to-date.
Vikas Lifecare’s subsidiary Genesis Gas Solutions entered into a Joint Venture Agreement (JVA) with Indraprastha Gas Limited (IGL) to set up India’s first Integrated Smart Meter Manufacturing Plant with a Capital Expenditure of Rs. 110 crores.
Vikas Lifecare Limited is engaged in the business of trading and manufacturing polymer and rubber compounds and specialty additives for plastics, synthetic & natural rubbers.
Genus Power Infrastructures Limited
With a market capitalisation of Rs. 12,570.8 crores, the shares of one of the largest players in India’s electricity metering solutions industry surged nearly 3 percent on BSE to Rs. 424.6 in the trading session of Friday.
In terms of return ratios, Genus Power Infrastructures has reported a return on equity (RoE) of 5.9 percent, and a return on capital employed (RoCE) of 9.74 percent.
The company’s debt-to-equity ratio is currently at 0.38, reflecting a low debt and suggesting a relatively lower level of financial risk throughout the financial year.
The company reported a significant 58.6 percent YoY increase in revenue from operations, rising from Rs. 261 crores in Q1 FY24 to Rs. 414 crores in Q1 FY25. Concurrently, its net profit also saw a 108.7 percent growth, climbing from Rs. 23 crore to Rs. 48 crore over the same period.
The stock delivered positive returns of around 53 percent in the last one year, as well as nearly 77.5 percent returns year-to-date.
Genus Power Infrastructures Limited is amongst the largest players in India’s electricity metering solutions industry, with around 27 percent market share.
The company is a market leader in various kinds of meters and has developed ‘smart metering solutions’, with in house R&D centre, along with an engineering, construction, and contracts (ECC) division which complements the existing meters business.
HPL Electric & Power Limited
With a market capitalisation of Rs. 3,780.8 crores, the shares of a leading manufacturer of electrical equipment surged 1.7 percent on BSE to Rs. 615.9 in the trading session of Friday.
In terms of return ratios, HPL Electric has reported a return on equity (RoE) of 5.37 percent, and a return on capital employed (RoCE) of 11.1 percent.
The company’s debt-to-equity ratio is currently at 0.76, reflecting a low debt and suggesting a relatively lower level of financial risk throughout the financial year.
The company reported a significant 22.4 percent YoY increase in revenue from operations, rising from Rs. 321 crores in Q1 FY24 to Rs. 393 crores in Q1 FY25. Concurrently, its net profit also saw a 142.8 percent growth, climbing from Rs. 7 crores to Rs. 17 crores over the same period.
The stock delivered multibagger returns of around 141 percent in the last one year, as well as nearly 115 percent returns year-to-date.
As of Q1 FY25, the company have a 50 percent market share in the domestic on-load change-over switches market, a 20 percent market share in the domestic electric metres market, and a 5 percent market share in the low-voltage switchgear market.
HPL Electric and Power Limited is an electric equipment manufacturing company in India, producing a wide range of electric equipment, including metering solutions, switchgear, lighting equipment, wires, and cables, catering to consumer and institutional customers in the electrical equipment industry.
Written by Shivani Singh
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