Ever wondered about debt-free stocks under Rs 50? They’re like hidden treasures because they’re a bit safer bets among the risky pool of penny stocks. We love them because we see being debt-free as a positive sign for the future. Let’s discover these affordable gems in this article and learn about them.
Best Debt Free Stocks Under Rs 50 :
Best Debt-Free Stocks Under Rs 50 #1: Infibeam Avenues Ltd.
Infibeam Avenues is a global fintech company providing digital payment solutions (DPS) under the brand name CCAvenue and enterprise software platforms (ESP) under the brand name BuildaBazaar to merchants, institutions, enterprises, and corporations.
It is headquartered at Gujarat International Finance Tech-City (GIFT) in Gandhinagar, with offices in Mumbai, Delhi, Bengaluru, the UAE, the KSA, and the USA.
The company’s portfolio consists of payment acquisition (online and offline through a SoftPoS), payment issuance and remittances, and relevant infrastructure. The number of transactions grew by 20.4% to 360 million, and the value of transactions increased by 51.8% to Rs. 4447 billion.
The financial statements of the company reported a 52% increase in revenue from operations, increasing from Rs. 1293.93 crore in FY22 to Rs. 1962.34 crore in FY23. The net profit stood at Rs. 136.27 crore. Increasing 63% from Rs. 83.65 crore in FY22. The revenue growth was mainly due to an increase in the number and value of transactions.
The three-year average RoE and RoCE stand at 3.33% and 4.15%, respectively. The 3-year net profit margin stood at 7.93%. The averages are low, but current-year ratios have improved compared to the average.
The promoters of the company hold 30.63% of the shares, and FII holds 6.46% of the shares as of March 31, 2023. This percentage has remained stable compared to FY22 but has decreased by 2.5% as of December 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 35.7 | Market Cap (Cr.) | ₹ 9,922 |
| EPS(TTM) | 0.55 | Stock P/E | 68.4 |
| RoE | 4.09% | RoCE | 5.53% |
| Promoter Holdings | 28.13% | FII Holdings | 6.31% |
| Debt to Equity | 0 | Price to Book Value | 3.07 |
| Operating Margin | 7.51% | Net Profit Margin | 6.38% |
Best Debt-Free Stocks Under Rs 50 #2: Axita Cotton Ltd.
Established in 2013, Axita Cotton (ACL) is a manufacturer and exporter of international-quality cotton bales and cotton yarn. Initially, they started as a producer and exporter of cottonseed oil under a partnership firm called ‘Aditya Oil Industries in 2007.
The production facility is located at Kadi in the Mehsana district of Gujarat, which is close to the thriving cotton-growing regions of Saurashtra and other parts of Gujarat, enabling them to source the finest raw materials and ensure the best quality in their products.
ACL caters to 12 countries around the globe, and its customer base includes ECOM, Amber, Nassa Group, Pacific Group, BROS, and many more.
The financial statements of the company reported a 32% decrease in revenue from operations, decreasing from Rs. 817.67 crore in FY22 to Rs. 552.60 crore in FY23. The net profit stood at Rs. 17.04 crore. Increasing 11% from Rs. 15.41 crore in FY22. Revenue has decreased and profit has increased, mainly due to a shift in focus toward higher-margin products and cost-saving measures.
The three-year average RoE and RoCE stand at 36.74% and 46.38%, respectively. The ratio indicates efficient utilization of resources and good returns. The 3-year net profit margin stood at only 1.85%.
The promoters of the company hold 69.65% of the shares, and FII holds 12.45% of the shares as of March 31, 2023. The promotor’s holding has decreased by 2.72% compared to FY22.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹27.2 | Market Cap (Cr.) | 709 |
| EPS(TTM) | 0.80 | Stock P/E | 33.8 |
| RoE | 38.4% | RoCE | 49.1% |
| Promoter Holdings | 64.77% | FII Holdings | 0.46% |
| Debt to Equity | 0.10 | Price to Book Value | 11 |
| Operating Margin | 2.25% | Net Profit Margin | 3.08% |
Best Debt-Free Stocks Under Rs 50 #3: Oswal Greentech Ltd.
Established in 1981, Oswal Greentech is engaged in real estate development and construction activities and the investment of surplus funds, including inter-corporate deposits.
Of the total revenue generated, 3.5% was contributed from real estate, 76% was contributed from investment, and the rest was unallocated.
The financial statements of the company reported a 15% decrease in revenue from operations, decreasing from Rs. 24.01 crore in FY22 to Rs. 20.50 crore in FY23. The net profit stood at Rs. 37.88 crore, decreasing 17% from Rs. 46.05 crore in FY22. Revenue and profit have decreased, mainly due to a decrease in sales.
The three-year average RoE and RoCE stand at 1.82% and 2.76%, respectively. The 3-year net profit margin stood at only 211.52%. The NPM is significantly high due to other income from investments.
The promoters of the company hold 64.34% of the shares, and FII holds 1.58% of the shares as of March 31, 2023. The promotor’s holding remained constant compared to FY22.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 42.6 | Market Cap (Cr.) | ₹ 814.09 |
| EPS(TTM) | 1.15 | Stock P/E | 29.12 |
| RoE | 1.53% | RoCE | 2.38% |
| Promoter Holdings | 69.65% | FII Holdings | 12.45% |
| Debt to Equity | 0 | Price to Book Value | 11.28 |
| Operating Margin | 3.49% | Net Profit Margin | 3.08% |
Best Debt-Free Stocks Under Rs 50 #4: Oswal Agro Mills Ltd.
Established in 1979, Oswal Agro Mills is in the business of trading real estate, commodities, etc., and also lends its surplus funds as interest-bearing inter-corporate deposits.
Out of total revenue in FY23, 52% is contributed by trading activities, and 48% is contributed by investment activities.
The financial statements of the company reported a 153% increase in revenue from operations, increasing from Rs. 11.02 Cr in FY22 to Rs. 27.95 Cr. in FY23. The net profit stood at Rs. 23.88 crore, an increase of 25% from Rs. 19.09 crore in FY22.
The three-year average RoE and RoCE stand at 0.72% and 1.28%, respectively. The 3-year net profit margin stood at only 25.53%. The NPM is significantly high due to other income from investments.
The promoters of the company hold 41.91% of the shares, and FII holds 0% of the shares as of March 31, 2023. The promotor’s holding increased by 0.17% compared to FY22.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 54.45 | Market Cap (Cr.) | ₹ 516.38 |
| EPS(TTM) | 0.59 | Stock P/E | 91.4 |
| RoE | 0.96% | RoCE | 0.36% |
| Promoter Holdings | 41.91% | FII Holdings | 0.33% |
| Debt to Equity | 0 | Price to Book Value | 0.83 |
| Operating Margin | -26.8% | Net Profit Margin | 85.4% |
Best Debt-Free Stocks Under Rs 50 #5: JMD Ventures Ltd.
Incorporated in 2000, JMD Ventures Ltd is in the entertainment segment (music industries) and finance and investments. It has expanded its reach by organizing regional concerts and events and has also made a presence in the international music industry.
The financial statements of the company reported a 140% increase in revenue from operations, increasing from Rs. 1.74 Cr in FY22 to Rs. 4.19 Cr. in FY23. The net profit stood at Rs. 2.49 crore. Increasing 1685% from Rs. 0.14 crore in FY22. Revenue has decreased and profit has increased, mainly due to a shift in the focus toward higher-margin products and cost-saving measures.
The three-year average RoE and RoCE stand at -0.69% and -0.20%, respectively. The 3-year net profit margin stood at only -7.01%. These ratios are negative, but in the last two FYs, the ratios have been positive and significantly increasing.
The promoters of the company hold 21.21% of the shares, and FII holds 0% of the shares as of March 31, 2023. The promotor’s holding has remained constant compared to FY22.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 22.53 | Market Cap (Cr.) | ₹ 77.83 |
| EPS(TTM) | 1.32 | Stock P/E | 17.1 |
| RoE | 10.28% | RoCE | 12.71% |
| Promoter Holdings | 21.18% | FII Holdings | 0 |
| Debt to Equity | 0 | Price to Book Value | 1.75 |
| Operating Margin | 88.7% | Net Profit Margin | 60.2% |
Conclusion
As we conclude this article, “Best Debt-Free Stocks Under Rs 50,” we have learned about their businesses and fundamentals. As these are micro-cap stocks, they are considered to be risky investments. A detailed analysis is required to understand the risk & return characteristics and suitability before investing.
