Finest Debt Free Small Cap Shares in India To Add To Your Watchlist

Finest Debt Free Small Cap Shares: Each skilled and new traders are fascinated by small-cap shares, the underdog of the inventory market. Check out any ace traders’ portfolio. You’ll discover that their funding journey began with one or two firms that made probably the most wealth of their portfolio.

Mixed with their vital development potential and a usually unaware public, the small-cap shares have hidden gems, able to reworking the wealth of any investor. That mentioned, we’ve compiled an inventory of a few of the greatest debt free small cap shares.

Finest Debt Free Small Cap Shares in India

Listed here are listing of Finest Debt Free Small Cap Shares listed in NSE and BSE

Finest Debt Free Small Cap Shares #1 – Clear Science & Expertise

CSIT is a chemical firm, with chemical manufacturing enterprise arms within the FMCG, pharmaceutical, agro, and efficiency chemical sectors. The corporate was integrated in 2003 and innovates its merchandise with its in-house analysis and improvement facilities. The corporate bought listed just lately, in 2021, making it one of many extra just lately listed firms on our listing. 

Financials Of Clear Science Expertise:

Clear Science is a small-cap chemical firm, sized at ₹15,784 crores. As of FY 22, the corporate reported gross sales of ₹685 crores and a internet revenue of ₹229 crores. 5 years prior, the corporate earned ₹241 crores and a internet revenue of ₹49 crores.

The corporate’s gross sales and internet income have been on a constructive upward pattern. It has a phenomenally excessive ROE of 34.9 p.c and a ROCE of 46.6 p.c. 

One other constructive trait is that the corporate is debt free, with a D/E ratio of zero. The inventory P/E of 55.4 is way larger than its trade P/E of 27.7. Promoters of Clear Science maintain a 78.5 p.c stake within the firm, and there hasn’t been any latest stake sale as of March 2023.

Since itemizing in 2021, the corporate’s share value has barely fallen, given a detrimental return of (-8.3) p.c. 

Finest Debt Free Small Cap Shares #2 – GNFC

GNFC is a Gujarat-based chemical firm, arrange collectively with the federal government of Gujarat and the Gujarat State Fertilizers & Chemical compounds. Since starting operations in 1982, the corporate has grow to be one of many largest fertilizer firms on the earth.

Their fertilizer merchandise embrace urea, nitro phosphate, neem de-oiled cake, and Narmade Neem pesticides. At present, together with manufacturing fertilizers, the corporate has diversified into chemical compounds, petrochemicals, electronics, and knowledge expertise. 

Financials Of GNFC:

GNFC is a small cap fertilizer firm, being one of many largest producers of fertilizer within the nation. As per the most recent annual report (FY 22), the corporate earned ₹8,642 crores and a internet revenue of ₹1,704 crores.

A 5-year overview of the corporate reveals that it has improved gross sales, working revenue margins, and because of this, internet income as effectively. To check, FY 18 noticed the corporate earn ₹5,837 crores in gross sales and ₹790 crores in internet income.

The working revenue margin has additionally improved from 24 p.c (FY 18) to twenty-eight p.c (FY 22). The ROE and ROCE figures of GNFC are wonderful, at 24.5 p.c and 33.1 p.c respectively.

Promoters of GNFC, Gujarat State Fertilizers & Chemical compounds, and Gujarat State Investments, personal 41.18 p.c of the corporate. As per the most recent knowledge, the promoters haven’t trimmed any stake within the firm. GNFC has given a constructive, however barely underwhelming return of 24 p.c up to now 5 years. 

Finest Debt Free Small Cap Shares #3 – CDSL 

As an investor in the event you’ve offered shares just lately, particularly shares purchased from BSE, you might need heard of CDSL. Within the Indian markets, there are solely two depositories, of which certainly one of them is listed – Central Depository Companies Ltd (CDSL).

The corporate gives providers to exchanges to clearing companies, inventory exchanges, traders, and depository individuals. Arrange in 1999, CDSL is the 2nd depository establishment after NSDL. The corporate gives numerous investor providers, together with the upkeep of demat accounts, commerce settlements, share transfers, account statements, and nominations, to call a couple of. 

Financials Of CDSL:

CDSL is kind of a duopoly firm, as there are solely two main depository establishments within the Indian market. Within the monetary 12 months ending March 2023, CDSL earned ₹555 crores in revenues and ₹319 crores in working income, translating to an working revenue margin of 57 p.c.

Its internet income for the 12 months have been ₹276 crores, one of many highest income within the firm’s working historical past. In FY 19 the corporate earned ₹196 crores in gross sales and ₹115 crores in internet income, with an OPM of 56 p.c.

The corporate’s ROE and ROCE are nice, at 23.9 p.c and 31.6 p.c respectively. Promoters of CDSL personal a low stake of 20 p.c within the firm, with the general public being the most important shareholder (46.8 p.c).

CDSL is likely one of the best-performing debt free small-cap shares on our listing, giving a return of 251 p.c within the final 5 years.

Finest Debt Free Small Cap Shares #4 – Mazagon Dock Shipbuilders

Of all the businesses on our listing of greatest debt free small cap shares, Mazagon Dock Shipbuilders has probably the most attention-grabbing product vary – Warships, Submarines, oil platforms, ferries, floating cranes, and virtually each different industrial floating vessel you’ve seen on the open sea.

Up to now 60+ years, Mazagon Dock has constructed over 800 vessels, together with 27 warships and seven submarines. In addition to constructing ships and different sea vessels, the corporate additionally gives upkeep and restore providers to home and worldwide purchasers. 

Financials Of Mazagon Dock:

Mazagon Dock Shipbuilders is a Ministry Of Defence firm, below the federal government of India. It reported earnings of ₹5,733 crores for FY 22, and working income of ₹442 crores, translating to an OPM of 8 p.c.

Their internet income for the 12 months have been ₹586 crores, the very best up to now 5 years of operations. Although the corporate is worthwhile and producing revenues, the expansion has been sluggish lately. ROE (19.1 p.c) and ROCE (25.5 p.c) of the corporate are constructive and fairly excessive. 

The P/E of Mazagon Dock (17.5) is lower than half that of its trade P/E of 36.3, displaying indicators of underpricing. The corporate has a D/E ratio of zero, as the corporate is sort of debt free.

The federal government of India owns a considerable 84.8 p.c stake in Mazagon Dock, making them the bulk shareholder. Since itemizing in October 2020, Mazagon Dock Shipbuilders has given a triple bagger return of 356 p.c. 

Finest Debt Free Small Cap Shares #5 – Shanthi Gears

A part of the generational enterprise dynasty – The Murugappa Group, and a subsidiary of Tube Investments, Shanthi Gears is a small-cap engineering firm. They design, manufacture, and provide gears and gearboxes to automotive firms. They make use of over 1000 folks and have three to 4 manufacturing services, supplying integral components to main automotive firms. 

Financials Of Shanthi Gears:

The newest monetary 12 months (FY 22) turned fruitful for Shanthi Gears, which reported an all-time excessive income of ₹377 crores and internet revenue of ₹59 crores. One other issue that makes FY 22 necessary is the sudden development spurt in income, because the earlier 4 years noticed its gross sales and income stagnate across the identical ranges.

For the monetary 12 months ending 2018, Shanthi Gears reported revenues of ₹214 crores and a internet revenue of ₹29 crores. The working revenue margin for the 5-year interval has improved barely from 17 p.c to 18 p.c. 

The corporate has a constructive and reassuring ROE (17 p.c) and ROCE (23.7 p.c). The inventory P/E of Shanthi Gears is 47.7, which is sort of double that of its trade P/E of 24.6. This might point out that the inventory is overpriced at its present ranges.

Promoters of Shanthi Gears, Tube Investments Of India personal a 70.5 p.c stake within the firm, with no main enhance or lower just lately. Up to now 5 years, Shanthi Gears has given a multi-bagger return of 177.5 p.c. 

Record of Debt Free Small Cap Shares in India

S.No.NameMar Cap in CrCMP Rs.P/EDebt / Eq

1Mazagon Dock15401.07763.617.140

2Gland Pharma15241.45925.418.630

3Clean Science15236.761434.251.60

4I D F C15185.4594.9122.480

5Nippon Life Ind.14756.81236.820.420

6Lloyds Metals14596.97328.1516.060

7Gillette India14210.854360.542.870

8Finolex Cables12976.91848.523.450

9Krishna Institu.12849.271605.650.860

10Triveni Turbine12751.62401.1566.160

11Lak. Mach. Works12347.7311558.332.120

12NMDC Steel11956.9140.80

13C D S L10317.31987.337.370

14National Standar9600.14800.051163.650

15G N F C9263.045966.340

16Rites9240.86384.5517.030

17Data Pattern9002.531608.0572.580

18UTI AMC8671.73682.920.460

19NBCC760542.2521.140

20KSB7602.142183.941.450

21BSE7243.62535.535.230

22Multi Comm. Exc.6943.431361.4546.640

23G S F C6371.64159.94.890

24Saregama India5885.84304.9531.170

25Mah. Scooters5806.45508029.750

26Caplin Level Lab5585.19735.6515.80

27G M D C5347.17168.155.660

28Avanti Feeds5175.97379.918.020

29VST Industries5165.63345.615.810

30Kennametal India5131.72334.952.780

31Vesuvius India4914.63242136.010

32Elantas Beck4665.675883.5548.680

33JSW Holdings4632.04417315.450

34NESCO4327.28614.1514.880

35Sharda Cropchem4294.4747612.540

36Infibeam Avenues4030.0815.0529.570

37Volt.Rework.3988.863942.819.960

38Kirl.Pneumatic3751.07580.3534.530

39NOCIL3677.04220.6519.380

40Brightcom Group3277.0716.242.40

41MOIL3264.87160.4511.090

42Shanthi Gears3248.15423.448.490

43TD Energy Systems3197.59204.833.360

44Ganesh Housing3018.6136230.170

45Kaveri Seed Co.2885.5651610.60

46Jai Corp2830.17158.6159.360

47I T D C2815.36328.2547.480

48Divgi Torq2520.99824.349.290

49Hathway Cable2414.4213.6433.940

50Bhansali Engg.2389.0314417.590

51VST Until. Tract.2305.442668.524.950

52Honda India2301.832270.0523.760

53Paushak2173.17705141.20

54Swaraj Engines2168.871785.6516.260

55Savita Oil Tech2109.98305.358.720

56Cartrade Tech2000.03426.961.360

57Butterfly Gan Ap1998.98111838.680

58Paras Defence1959.39502.454.480

59Wendt India1836.999184.9545.810

60Vakrangee1823.417.2145.510

61Panama Petrochem1821.46301.17.620

62Tanfac Inds.1775.51178031.580

63Seshasayee Paper1739.75275.854.360

64Foseco India1726.032701.1535.960

65Alembic1723.2567.118.580

66Amrutanjan Healt1715.8358741.030

67Jyoti Resins1700.11416.7536.660

68Sirca Paints1649.7730135.750

69Tide Water Oil1566.08898.813.320

70BF Investment1446.123846.260

71Goldiam Intl.1442.28132.3517.080

72Rel. Indl. Infra1360.4900.95148.170

73RPG LifeScience.1251.43756.6518.50

74Sh. Digvijay Cem124685.8121.540

75Suven Life Scie.1242.3856.970

76Disa India1163.53800139.050

77Nalwa Sons Invst1131.32220112.320

78Uniphos Enter.1095.77157.5528.640

79Raghav Product.1077.6493941.690

80EKI Energy1075.38390.853.10

81Guj. Themis Bio.1074.54739.618.540

82Likhitha Infra.1066.93270.4517.720

83Excel Industries1063.4884613.290

84Ksolves India1048.0188442.120

85John Cockerill1046.32211881.190

86Cressanda Solns.1038.8926.07532.750

87G M Breweries1022.47559.410.770

Conclusion

On this article we bought to find out about a few of the greatest debt free small cap shares. Whereas a scarcity of debt or borrowings is a crucial funding filter, it shouldn’t be the one criterion when selecting shares. Particularly small-cap shares, which witness larger danger, volatility, and competitors from trade leaders.

Aside from debt, you must also contemplate the return on fairness, gross sales, revenue development, working revenue margins, and extra. How necessary is debt once you decide shares? Tell us beneath!

By using the inventory screener, inventory heatmap, portfolio backtesting, and inventory evaluate instrument on the Commerce Brains portal, traders acquire entry to complete instruments that allow them to determine the perfect shares additionally get up to date with inventory market information, and make well-informed funding selections.