debt free penny stocks under Rs 50: Investors are always on the lookout for penny stocks in the hope of multi-bagger gains. However, as much as the potential upside, a wise investor also protects her downside. One way to protect the downside is to go for debt-free stocks which will not go bust if earnings evaporate for a few quarters.
In this article, we present you such top debt free penny stocks under Rs 50.
Debt Free Penny Stocks Under Rs 50
In this article, we’ll read about the business model, earnings, and various other metrics. So without further ado, let us jump to the top debt-free penny stocks under Rs 50.
Debt Free Penny Stocks Under Rs 50 #1 – Pasupati Acrylon
| CMP | ₹33.2 | Market Cap (Cr.) | ₹297 |
| EPS | ₹3.45 | Stock P/E | 9.66 |
| ROCE | 25.3% | ROE | 17.9% |
| Face Value | ₹10.0 | Book Value | ₹33 |
| Promoter Holding | 65.9% | Price to Book Value | 1.0 |
| Debt to Equity | 0.0 | Dividend Yield | 0.0% |
| Net Profit Margin | 5.92% | Operating Profit Margin | 8.06% |
Pasupati Acrylon traces its origins to 1990 when the promoters established an acrylic fibre manufacturing plant in technical collaboration with SNIA BPD Italy. Over the years, the textile debt-free stock has expanded using advanced technology, automation, computerized process control systems and captive power to reach an annual production capacity of 45,000 MT.
Its broad range of products finds end applications in sweaters, shawls, apparel, blankets, carpets and upholstery.
Additionally, as part of its diversification efforts, it has also set up CPP Films production facility with an installed capacity of 10,000 MT per annum.
The net profit of Pasupati Acrylon has grown at a CAGR of 10.44% over the past five years from Rs. 28 crores in FY18 to Rs. 46 crores in FY22. It has nil debt and presently trades at a price-to-earnings ratio of 9.80 and a price-to-book value of 1.02.
Debt Free Penny Stocks Under Rs 50 #2 – Rajoo Engineers
| CMP | ₹29 | Market Cap (Cr.) | ₹181 |
| EPS | ₹2.19 | Stock P/E | 13.40 |
| ROCE | 22.8% | ROE | 17.0% |
| Face Value | ₹1.0 | Book Value | ₹16 |
| Promoter Holding | 65.8% | Price to Book Value | 1.9 |
| Debt to Equity | 0.0 | Dividend Yield | 0.85% |
| Net Profit Margin | 8.53% | Operating Profit Margin | 12.20% |
Rajoo Engineers is a small-cap manufacturer of extrusion machines. It sells various types of machines with different end applications that can produce flexible packaging, pipe plants, N95 masks, lab equipment, cross-lamination films, thermoforming, and more.
Mr C.N. Doshi started the company in a small village in Gujarat. Over the last 36 years, it has acquired a leadership position in Asia among the same equipment manufacturers.
Rajoo has an international presence with exports accounting for more than 50% of its sales. It has supplied machines to over 60 countries worldwide, with 60% of the revenue originating from repeat customers.
Barring FY20, its net profit has consistently increased over the past four years from Rs 8 crore in FY19 to Rs 16 crore in FY22. Meanwhile, its revenue stood at Rs 190 crore in the recent financial year.
The business boasts of high return ratios with RoCE and RoE at 22.8% and 17.0% respectively. It is a debt-free penny stock and presently trades at a price-to-earnings ratio of 13.40.
Debt Free Penny Stocks Under Rs 50 #3 – Manaksia Steels
| CMP | ₹35.8 | Market Cap (Cr.) | ₹235 |
| EPS | ₹3.27 | Stock P/E | 11 |
| ROCE | 17.0% | ROE | 13.7% |
| Face Value | ₹1.0 | Book Value | ₹41.6 |
| Promoter Holding | 74.8% | Price to Book Value | 0.88 |
| Debt to Equity | 0.15 | Dividend Yield | 0.00% |
| Net Profit Margin | 5.50% | Operating Profit Margin | 8.69% |
Manaksia Steels is a small-cap steel manufacturing company producing cold rolled coils, hot dipped galvanized steel, and prepainted profile sheets. It was founded in 1972 and is the flagship enterprise of the Manaksia Group.
Manaksia is a multi-location company with production capabilities in India and Nigeria. Its operations are backwardly integrated for the galvanizing plant. Its present monthly production capacity stands at 8,000 MT for cold rolled coils and 5000 MT for colour-coated steel products.
The steel producer reported a net profit of Rs 35 crore on sales of Rs 611 crore in FY22. Its revenue expanded by 21.23% and net profit grew by 29.63% from Rs 504 crore and Rs 27 crore in FY21 respectively.
It is a debt-free stock with a negligible debt-to-equity ratio of 0.15 only for a manufacturing enterprise. Currently, Manaksia Steels trades at an attractive price-to-book value of 0.88. Additionally, it has a high promoter holding of 74.8%.
Debt Free Penny Stocks Under Rs 50 #4 – GP Petroleums
| CMP | ₹42.8 | Market Cap (Cr.) | ₹218 |
| EPS | ₹6.76 | Stock P/E | 6.30 |
| ROCE | 8.56% | ROE | 7.89% |
| Face Value | ₹5.0 | Book Value | ₹52.7 |
| Promoter Holding | 63.4% | Price to Book Value | 0.79 |
| Debt to Equity | 0.06 | Dividend Yield | 0.00% |
| Net Profit Margin | 2.60% | Operating Profit Margin | 4.20% |
Established in 1973, GP Petroleums is a debt-free penny stock engaged in the manufacturing of lubricants and greases. The small-cap company produces automotive lubricants, industrial lubricants, engine oils and rubber processing oils.
It has an installed production capacity of 80,000 KL and a storage facility of 15,000 KL.
Its in-house IPOL brand is well-known in India and abroad likewise. It has entered into an agreement with MAG LUBE, an established lubricant manufacturer in the Middle East to produce and market IPOL lubricants internationally.
Additionally, the debt-free penny stock has an exclusive agreement with Spanish oil giant, Repsol for the processing, distribution, sales & marketing of its product in India.
GP Petroleums has been consistent with its net profit which didn’t decline in the pandemic-affected FY20 and FY21 either. Overall, its net profit has increased from Rs. 16 crore in FY18 to Rs 19 crore in FY22. During the same period, its revenue grew to Rs. 718 crores from Rs. 519 crores earlier.
Debt Free Penny Stocks Under Rs 50 #5 – Airan
| CMP | ₹16.7 | Market Cap (Cr.) | ₹209 |
| EPS | ₹0.80 | Stock P/E | 20.90 |
| ROCE | 8.81% | ROE | 7.14% |
| Face Value | ₹2.0 | Book Value | ₹8.61 |
| Promoter Holding | 72.4% | Price to Book Value | 1.96 |
| Debt to Equity | 0.05 | Dividend Yield | 0.00% |
| Net Profit Margin | 8.16% | Operating Profit Margin | 13.60% |
Airan was founded way back in the 1990s when Sandeep Agrawal, the founder of the company started computer coaching classes. Identifying a huge opportunity ahead, the company forayed into processing IPO applications for public sector banks in 1995.
Over the past three decades, Airan diversified into providing a multitude of financial services: MICR clearing, cash management, and IT & IT-enabled services. As of the present date, it has a strong foothold in information technology (IT) and Information Technology enabled services (ITES).
Airan provides banking transaction processing services and document management services for internet services providers, payment banks, telecommunication companies, and more such enterprises.
The income of this debt-free penny stock has grown at a CAGR of 14.47% every year from Rs 58 crore in FY20 to Rs 87 crore in FY22. It earned a net profit of Rs 10 crore in FY22.
It has a high promoter shareholding of 72.4% and presently trades at a slightly high P/E ratio of 20.90 and a price-to-book value ratio of 1.96.
List of Debt Free Penny Stocks Under Rs 50
We read about the five top debt-free penny stocks in detail above. The list below highlights more such penny stocks.
| Company Name | Industry | CMP (Rs) | Market Cap (Rs Cr) |
|---|---|---|---|
| PTL Enterprises | Leasing | 32.2 | 427 |
| Pasupati Acrylon | Textile | 33.2 | 297 |
| Manaksia Steels | Steel | 33.8 | 221 |
| GP Petroleums | Lubricants | 42.8 | 218 |
| Airan | ITeS | 16.4 | 206 |
| Rajoo Engineers | Industrial Goods | 29.4 | 181 |
| LKP Securities | Financial Services | 13.8 | 104 |
| BCPL Railway Infrastructure | Infrastructure | 47.6 | 80 |
| Upsurge Investment & Finance | Financial Services | 45.3 | 69 |
| Krishanveer Forge | Forging | 48.0 | 53 |
In Conclusion
In this article, we looked at some of the debt-free penny stocks under Rs 50 in India. But, low or nil debt should not be the only criteria for putting money into penny stocks. As a rule of thumb, the smaller the size of the company, the more paranoid should the investor be with her checklist. In addition to this, return ratios, quarterly sales growth, and operating margins are some other important filers.
In your opinion, what parameters should make a good checklist for investing in penny stocks? How about you let us know in the comments below?
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