Small cap stocks are generally preferred by investors who want to generate higher returns from their investments. However, with high reward comes high risk. Small cap stocks generally tend to fluctuate more as the markets move. Therefore it is imperative to check the financials of the company before investing in them.
Here are four debt-free small cap stocks with good financials to add to your watch list:
Shanthi Gears Limited
The shares of Shanthi Gears Limited were trading up by 0.20% on Friday and were trading at Rs 229 levels. In the last five days, the stock shed 4.49%. However, in the first eight months of 2022, it has added 51.38% YTD.
The company reported total revenue of Rs 98 Crores in Q1FY23 up 50 per cent from Rs 66 Crores which it earned in the same period a year ago. Their net profit for the period stood at Rs 13 crores up from Rs 8 crores in Q1FY2.
The company has a market capitalization of Rs 1,762 Crores and has zero debt on its balance sheet. It is a dividend-paying stock with a dividend yield of 1.09%.
Shanthi Gears Ltd is in the business of designing, manufacturing, supplying, and servicing gears and gearboxes. The company is a subsidiary of Tube Investments of India Limited which is a Murugappa group company.
Techno Electric & Engineering Company Limited
The shares of Techno Electric & Engineering Company were trading 0.88% up at Rs 299.35 levels on Friday. In the last five days, the stock has shed more than 3%. In the first eight months of 2022, the stock has added 22.48% YTD.
The quarterly results of the company are yet to be announced. On a yearly basis, the company reported total revenue of Rs 1,073 Crores in FY22 up by 21 per cent from Rs 889 Crores which it earned a year ago. Their net profit rose by 42 per cent to Rs 260 crores in FY22 from Rs 183 in FY21.
The company has a market capitalization of Rs 3,292 Crores and has zero debt on its balance sheet. The dividend yield of the company is 1.09%. The stock is undervalued as its PE stands at 12.50 against the sector PE of 22.04.
Techno Electric & Engineering Company Ltd is engaged in providing Engineering, Procurement and Construction (EPC), asset ownership, and operations and maintenance services in the power infrastructure industry.
Moil Limited
The shares of Moil Limited were trading 0.62% down at Rs 161 levels on Friday. In the last five days, the stock has shed 0.92% so far in 2022, and 3.92% as per year-to-date (YTD) data.
In Q1FY23, the company posted total revenue of Rs 375 Crores up 28 per cent from Rs 293 Crores which it earned in the same quarter a year ago. Their net profit jumped by to Rs 102
Crores in the quarter up from Rs 61 Crores in Q1FY22.
The company has a market capitalization of Rs 3,290 Crores and has zero debt on its balance sheet. It is also a dividend-paying stock with a high dividend yield of 3.71%.
MOIL (earlier known as Manganese Ore India Limited) is a mini Ratna state-owned manganese ore mining company. It is the largest producer of manganese ore in India with a market share of more than 50%.
Swaraj Engines Limited
The shares of Swaraj Engines were trading up by 0.65% on Thursday and were trading at Rs 1,583 levels. In a month, the stock has added more than 8%. However, so far this year the stock has been volatile and shed approximately 2% YTD.
In Q1FY23, the company earned Rs 398 Crores up from Rs 314 Crores in the same quarter a year prior. Their net profit stood at Rs 39 Crores in the quarter up from Rs 33 Crores in Q1FY22.
The company has a market capitalization of Rs 1,923 Crores and has zero debt on its balance sheet. It is also a dividend-paying stock with a high dividend yield of 5.05%. The stock is also undervalued with a PE ratio of 16.67 as against the sector PE of 33.96.
Swaraj Engines was promoted by erstwhile Punjab Tractors Limited ( since merged with Mahindra and Mahindra Ltd.) and Kirloskar Oil Engines Ltd. in 1985. It manufactures diesel engines specifically for tractors in the range of 22 HP to above 65 HP and hi-tech Engine Components.
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.
