Being a ‘debt-free’ company gives the entity the luxury to enjoy a competitive edge over others when it comes to short-term financial obligations.
Listed below are three debt-free small-cap stocks with high dividend yield that one should add to their watchlist:
Aditya Birla Sun Life AMC Limited
With a market capitalization of Rs 12,518.16 crores, the stocks of Aditya Birla Sun Life AMC Limited, offering mutual funds as well as portfolio management services closed at Rs 434.55 on Monday, slipping around 2.30 percent as compared to the previous close of Rs 444.80 apiece.
According to the recent financial quarter data available, the company reported an increase in operating revenues as well as net profits with the former moving up from Rs 296 crores during Q4FY22-23 to Rs 311 crores during Q1FY23-24, and, the latter, during the same period, growing from Rs 135 crores to Rs 184 crores.
The company’s debt-to-equity ratio, one of the most followed leverage metrics, is reported at a rate of ‘zero’. Moreover, the company portrays a dividend yield of 2.30 percent.
Gujarat Mineral Development Corporation Limited
With a market capitalization of Rs 11,241.30 crores, the stocks of Gujarat Mineral Development Corporation Limited, engaged in the mining & power business, closed at Rs 353.50 on Monday, slipping around 10 percent as compared to the previous close of Rs 392.95 apiece.
According to the recent financial years, the company reported an increase in operating revenues as well as net profits with the former moving up from Rs 2,859 crores during FY21-22 to Rs 3,501 crores during FY22-23, and, the latter, during the same period, growing from Rs 403 crores to Rs 1,213 crores.
The company’s debt-to-equity ratio, one of the most followed leverage metrics, is reported at a rate of ‘zero’. Moreover, the company portrays a dividend yield of 2.91 percent.
Castrol India Limited
With a market capitalization of Rs 13,620.22 crores, the stocks of Castrol India Limited, engaged in the business of manufacturing & marketing of automotive and industrial lubricants, closed at Rs 137.70 on Monday, slipping around 3.70 percent as compared to the previous close of Rs 142.95 apiece.
According to the recent financial quarter data available, the company reported an increase in operating revenues as well as net profits with the former moving up from Rs 1,293 crores during Q4FY22-23 to Rs 1,333 crores during Q1FY23-24, and, the latter, during the same period, growing from Rs 202 crores to Rs 225 crores.
The company’s debt-to-equity ratio, one of the most followed leverage metrics, is reported at a rate of ‘zero’. Moreover, the company portrays a dividend yield of 4.55 percent.
Written by Amit Madnani
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