Best Debt Free Penny Stocks in India: Penny stocks can be risky but highly rewarding at the same time. They are preferred by daring investors to grow their portfolios multifold.
However, a wise investor also protects her downside while keeping a laser-sharp focus on the upside. One way to protect downside is to pick low debt or debt free companies. In this article, we’ll read about the best debt free penny stocks in India which you can add to your watchlist.
Table of Contents
Best Debt Free Penny Stocks in India
For our study of best debt free penny stocks, we’ll learn about the business models and any recent developments of the companies. We’ll also look at their metrics. In the end, a table puts names of the best debt free penny stocks in India. So without further ado, let us jump ahead.
Best Debt Free Penny Stocks in India #1 – Singer India
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹82.05 | Market Cap (Cr.) | ₹519.22 |
| EPS | ₹1.4 | Stock P/E | 62.41 |
| RoE | 2.7% | RoCE | 4.0% |
| Promoter Holding | 31% | Book Value | ₹22 |
| Debt to Equity | 0.01 | Price to Book Value | 3.30 |
| Net Profit Margin | 0.6% | Operating Margin | 0.4% |
Established over 170 years ago, Singer India is a leading manufacturer of sewing machines for domestic and commercial uses. It is a small company with a market capitalization of Rs 453 crore.
It has a wide portfolio of different types of machines including zig-zag, straight stitch, artisan, industrial, and more. In recent years, the company has also started focusing on fast-moving electrical goods (FMEG), consumer electronics, and home appliances such as fans, mixers, water heaters, room heaters, air coolers, etc.
It is one of the investment picks of the late billionaire investor Rakesh Jhunjhunwala. Presently, his associates hold 4,250,000 shares in the company amounting to 7% of the total shareholding.
Singer India is a debt free penny stock trading at a price of Rs 74 per share currently. The company has been consistently profitable for more than 10 years. It reported a net profit of Rs 8 crore on sales of Rs 460 crore in FY23.
Best Debt Free Penny Stocks in India #2 – Rajoo Engineers
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹53 | Market Cap (Cr.) | ₹332.33 |
| EPS | ₹1.6 | Stock P/E | 20.66 |
| RoE | 10.2% | RoCE | 13.4% |
| Promoter Holding | 66% | Book Value | ₹17 |
| Debt to Equity | 0.01 | Price to Book Value | 2.89 |
| Net Profit Margin | 6.3% | Operating Margin | 8.8% |
Founded over three and a half decades ago, Rajoo Engineers is involved in the business of manufacturing extrusion machines and tools. These types of equipment are used for the production of a wide variety of goods such as flexible packaging, pipes, lamination films, thermoform, face masks, lab equipment, etc.
The company had its humble beginnings when Mr C.N. Doshi established it in a small village in the state of Gujarat. As of the present date, it is one of the leading producers of such machines all over Asia.
Its machines are exported to more than 60 nations around the world. As a result, exports account for roughly half of the total income of Rajoo Engineers.
Furthermore, the company commands trust among its customers with 60% of sales coming from repeat customers that includes names such as Reliance Industries, Uflex, and Indian Oil among others.
Rajoo Engineers earned a net profit of Rs 10 crore on an income of Rs 160 crore in FY23. It presently trades at a price-to-earnings ratio of 30 and a price-to-book value ratio of 2.89 respectively. Furthermore, it is a debt free penny stock with an adequate promoter holding of 66%.
Best Debt Free Penny Stocks in India #3 – Pasupati Acrylon
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹28.4 | Market Cap (Cr.) | ₹272.75 |
| EPS | ₹4.0 | Stock P/E | 7.60 |
| RoE | 12.1% | RoCE | 17.5% |
| Promoter Holding | 66% | Book Value | ₹35 |
| Debt to Equity | 0.00 | Price to Book Value | 0.87 |
| Net Profit Margin | 4.3% | Operating Margin | 6.0% |
Pasupati Acrylon was started 20 years ago in 1990 in technical collaboration with SNIA BPD of Italy. The promoters set up a production plant for acrylic fibre. Its products go into the making of heavy textiles such as sweaters, carpets, shawls, apparel, upholstery, and blankets.
As of the present date, it is an established company with leading technologies in place. It uses advanced, automated, and computerized process control systems. In addition to this, Pasupati Acrylon has captive power generation capabilities despite its small size.
The company has its manufacturing base in Uttar Pradesh with an installed capacity in place for 45,000 MTPA of acrylic fibre production. Furthermore, it has an installed capacity of 10,000 MTPA for CPP films.
As a feather in its cap, this debt free penny stock has been consistently profitable for the last ten financial years. It presently trades at an attractive P/E of 8 and at a P/B ratio of 0.9 giving it a market capitalization of Rs 273 crore.
Best Debt Free Penny Stocks in India #4 – Airan
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹21 | Market Cap (Cr.) | ₹260 |
| EPS | ₹0.8 | Stock P/E | 25 |
| RoE | 9.5% | RoCE | 12.7% |
| Promoter Holding | 72% | Book Value | ₹9 |
| Debt to Equity | 0.04 | Price to Book Value | 2.32 |
| Net Profit Margin | 11.0% | Operating Margin | 17.0% |
Airan is a micro cap information technology services provider with a high promoter holding of 72%. It was founded by Sandeep Agarwal during the early 1990s.
Initially, it was in the business of computer education but ventured into the processing of applications for IPOs of government banks in the mid-1990s.
Since then, it has diversified its business and now provides a multitude of IT and IT-enabled services in the financial services domain such as MICR clearing and document management for ISPs, telecom companies, & payment banks.
Furthermore, it also provides cash management services to its clients. Its profit after tax has consistently increased multifold from Rs 2 crore in FY17 to Rs 11 crore in FY23. Its stock trades a P/E of 25 giving the company a market value of Rs 260 crore.
Best Debt Free Penny Stocks in India #5 – GP Petroleums
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹42 | Market Cap (Cr.) | ₹223 |
| EPS | ₹4.9 | Stock P/E | 12.13 |
| RoE | 9.6% | RoCE | 11.4% |
| Promoter Holding | 63% | Book Value | ₹54 |
| Debt to Equity | 0.11 | Price to Book Value | 0.72 |
| Net Profit Margin | 3.2% | Operating Margin | 4.6% |
GP Petroleums is a small company engaged in the production of lubricants and greases. It is a debt free penny stock with an adequate promoter holding of 63%. The company was founded 50 years ago in 1973 and has grown to have an installed production capacity and storage facility of 80,000 KL and 15,000 KL respectively.
Talking about its product portfolio, GP Petroleums makes automotive lubricants, engine oils, industrial lubricants, and oils for rubber processing. Its IPOL brand has developed a strong calling over the last several years.
In a recent development, it has partnered with MAG LUBE, a prominent lubricant manufacturer from the Middle East for the manufacturing and sale of its products worldwide.
Further, it has entered into an exclusive partnership with Reposl, an established oil giant in Spain to process, distribute and market its products in India.
It reported a net profit of Rs 25 crore in FY23 on sales of Rs 790 crore. For a debt free penny stock, it has a sufficient promoter holding of 63%.
List of Best Debt Free Penny Stocks in India
The table below puts together the companies we covered above along with a few others.
| Company Name | CMP | Market Cap (Cr) | Industry |
|---|---|---|---|
| Singer India | ₹82.05 | ₹519.22 | Domestic Appliances |
| Rajoo Engineers | ₹53.8 | ₹332.33 | Engineering - Industrial Equipment |
| Pasupati Acrylon | ₹28.4 | ₹272.75 | Textiles |
| Airan | ₹21 | ₹260 | IT - Services |
| GP Petroleums | ₹42.95 | ₹223.01 | Lubricants |
| Intense Technologies | ₹84 | ₹191.78 | IT - Software |
| Jullundur Motor Agency (Delhi) | ₹70.15 | ₹165 | Auto Ancillary |
| Swadeshi Polytex | ₹47.07 | ₹187.32 | Real Estate |
| Surana Telecom and Power | ₹10.25 | ₹145.94 | Cables |
| Vedavaag Systems | ₹51.31 | ₹118.91 | IT - Software |
Conclusion
As we conclude our study of the ‘best debt free stocks in India’, we can say that the companies covered above are debt free because of their consistent history of profits. However, investors must exercise extreme caution while investing in penny stocks as they have low liquidity and are prone to pump-and-dump schemes.
On a scale of 1 to 10, how comfortable are you with investing in penny stocks? Do you have any penny stock in your portfolio? How about we continue this conversation in thee comments below?
Written By Vikalp Mishra
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
The content in this 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.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
