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HomeSHARE MARKETBest Debt-free Penny Stocks In India: Low Risk, High Reward?

Best Debt-free Penny Stocks In India: Low Risk, High Reward?

Penny Stocks

Best Penny Stocks with Debt Free in India: Penny stocks can be risky, but they can also be extremely profitable at the same while. They are favoured by investors who are hesitant to increase their portfolios multiple times.

A wise investor also shields herself from the negatives while keeping her eye on the positive. One method to guard against the downside is to choose low-debt or debt-free businesses.

In the following article, you’ll look at the top penny stocks with no debt in India that you can include on your list of stocks to watch.

Best Debt-Free Penny Stocks in India

To help you determine the most debt-free penny stocks We’ll examine the business model as well as recent developments in the business. We’ll also analysis the metrics they use.

The final table lists the top debt-free penny stock options in India. Therefore, without further delay, we will jump forward.

1. Singer India Ltd.

Singer India is engaged in the trade of producing sewing machines, their accessories, as well as the selling of home appliances.

Founded around 170 years ago, It’s a small company with an annual market capitalization of 535 crore.

  • Current Market Price ₹ 87.4
  • Market Cap ₹ 535 Cr.
  • EPS ₹1.39
  • Stock P/E 241
  • RoE 2.67 %
  • RoCE 3.96 %
  • Promoter Holding 31%
  • Book Value ₹ 22.2
  • Debt to Equity 0.01
  • Price to Book Value 3.93
  • Net Profit Margin 0.6%
  • Operating Margin 0.4%

Recently, the company has focused on high-speed electrical goods (FMEG), consumer electronics, and household appliances such as mixers, fans and water heaters. It also has room heaters, air coolers etc.

It was one of the investments of former billionaire Rakesh Jhunjhunwala. The company’s associates own 425,000 shares, representing 77% of the company’s total shares.

Singer India is an unindebted penny stock trading at Rs. 774 per share as of now. Singer India has been profitable for over 10 years. The company reported a net loss of 8 crore on revenues of Rs 460 crore during FY23.

2. Rajoo Engineers

It was founded around three quarters of a decade ago. Rajoo Engineers is involved in the production of extrusion equipment and tools.

These kinds of machines are utilized to manufacture various items like flexible packaging pipes, lamination films, pipes thermoform, face masks and lab equipment, among others.

  • Current Market Price ₹ 60.3
  • Market Cap ₹ 371 Cr.
  • EPS ₹1.91
  • Stock P/E 31.6
  • RoE 10.2%
  • RoCE 13.4%
  • Promoter Holding 66%
  • Book Value ₹16.6
  • Debt to Equity 0.01
  • Price to Book Value 3.62
  • Net Profit Margin 6.3%
  • Operating Margin 8.8%

The company was founded with humble beginnings when Mr. C.N. Doshi founded it in a small town located in Gujarat. Currently, it is among the biggest producers of such machines throughout Asia.

The machines it manufactures are sold across more than 60 countries all over the world. In the end, exports make up about half of the overall revenue for Rajoo Engineers.

Additionally, the company has gained the trust of its clients and has 60% of sales being from repeat customers that include names such as Reliance Industries, Uflex, and Indian Oil, among others.

Rajoo Engineers earned a net income of 10 crores, based on revenue of around 160 crores in FY23.

It is trading at a price-to-earnings ratio of 30 as well as a price-to-book ratio of 2.89 and 2.89, respectively. Additionally, it is an unindebted penny stock with a sufficient promoter stake of 66 percent.

3. Pasupati Acrylon

Pasupati Acrylon was started around 20 years ago, in the year 1990. It was a technological collaboration along with SNIA BPD of Italy. The promoters made an acrylic fiberproduction facility.

The products are used in producing heavy textiles such as carpets and sweaters, as well as shawls, garments, upholstery, and blankets.

  • Current Market Price ₹30.6
  • Market Cap ₹272 Cr
  • EPS ₹2.94
  • Stock P/E 10.4
  • RoE 12.1%
  • RoCE 17.5%
  • Promoter Holding 66%
  • Book Value ₹35
  • Debt to Equity 0.00
  • Price to Book Value 0.86
  • Net Profit Margin 4.3%
  • Operating Margin 6.0%

At the current time, it’s a well-established firm with the most advanced technology in the market.

It utilizes advanced computers and automated control systems for process control. Additionally, Pasupati Acrylon has captive power generation capabilities despite its tiny size.

The company operates a manufacturing facility situated in Uttar Pradesh with an installed capacity of 45,000 MTPA of production of acrylic fibre. In addition, the company has the capacity to manufacture 10,000 MTPA for CPP films.

To add a feather to the cap, this debt-free penny stock has consistently been profitable over the past 10 years.

The stock is trading at a favourable P/E of 8 and a ratio of P/B of 0.9, with an estimated market capitalization of 273 crore.

4. Airan Ltd.

Airan is a microcap information technology provider with a promoter hold of 72 per cent. It was established in the early 1990s by Sandeep Agarwal during the early 1990s.

  • Current Market Price ₹22.2
  • Market Cap ₹ 278 Cr.
  • EPS ₹0.85
  • Stock P/E 26.3
  • RoE 9.5%
  • RoCE 12.7%
  • Promoter Holding 72%
  • Book Value ₹9
  • Debt to Equity 0.04
  • Price to Book Value 2.44
  • Net Profit Margin 11.0%
  • Operating Margin 17.0%

At first, it was the field of computer-based education. However, it expanded into processing applications for IPOs of state banks around the mid-1990s.

Since the beginning, it has expanded its offerings and is now able to provide numerous IT and IT-enabled services within the financial services industry, like MICR managing document clearing as well as the management of documents for ISPs, telecom companies and banks that deal in payments.

Additionally, it offers cash management services to its customers.

Profit after tax has consistently risen by a multiple of just Rs 2.35 crore during FY17 and around 11 crore for FY23. The stock is traded at a P/E of 25, which gives the company a market price of 260 crore.

5. GP Petroleums

GP Petroleums is a small firm that is involved in the manufacturing of greases and lubricants. It is a debt-free penny stock with a promoter stake of 63 percent.

The company was started fifty years ago in 1973 and has since grown to include a production capacity installed and storage facilities of 15,000 and 80,000 KL each.

  • Current Market Price ₹43.2
  • Market Cap ₹ 220 Cr.
  • EPS ₹3.61
  • Stock P/E 12.0
  • RoE 10.2 %
  • RoCE 12.2 %
  • Promoter Holding 63%
  • Book Value ₹54
  • Debt to Equity 0.11
  • Price to Book Value 0.80
  • Net Profit Margin 3.2%
  • Operating Margin 4.6%

In terms of its product line, GP Petroleums makes automotive oil engines, industrial lubricants, engine oils and rubber processing oil. Their IPOL brand has earned an impressive reputation in the past few years.

A recent development is that it has joined forces together with MAG LUBE, a prominent manufacturer of lubricants in the Middle East. Middle East for the manufacturing and selling of its products across the globe.

In addition, it has signed an exclusive collaboration with Reposl, which is an established oil major in Spain, to develop, distribute and sell its products across India.

It earned its net profit of Rs 25 crore for FY23, based on sales of around 790 crore. If you want to buy a debt-free penny stock, it can boast enough promoter holdings of 63 percent.

Conclusion

At the end of our research of the “best debt-free stocks in India” ” we can say that the stocks we have listed above are debt-free because of their enduring record of profit.

However, investors should be extremely cautious when purchasing penny shares because they are not able to pay for themselves and are vulnerable to pump-and-dump schemes.

Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. Though this is just for informational purposes, We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.

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