Debt-Free Penny Stocks Under Rs 50: Investors are always on the lookout for penny stocks in hopes of multibagger profits. However, a wise investor will protect the potential advantages as well as the disadvantages. One way to protect against the downside is to choose debt-free stocks that won’t go bankrupt even if earnings evaporate for a few quarters.
In this article, we will introduce debt free penny stocks under 50 rupees.
Debt Free Penny Stocks Under Rs 50
This article discusses business models, revenue, and various other metrics. So, without further ado, let’s 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 Capitalization (Cr.) | ¥297 |
EPS | ¥3.45 | price earnings ratio | 9.66 |
ROCEMore | 25.3% | egg | 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 margin | 8.06% |
Pasupati Acrylon’s origins date back to 1990, when the promoter set up an acrylic fiber manufacturing plant in technical cooperation with SNIA BPD Italy. Over the years, the textile debt-free inventory has expanded using advanced technology, automation, computerized process control systems, and in-house power generation, with annual production capacity reaching his 45,000 MT. bottom.
Its wide range of products find end uses such as sweaters, shawls, apparel, blankets, carpets and upholstery.
In addition, as part of our diversification efforts, we have also set up a CPP Films production facility with an annual installed capacity of 10,000 MT.
Pasupati Acrylon’s net profit grew at a CAGR of 10.44% over the past five years from Rs. Rs. 4.6 billion in FY22 from Rs. 2.8 billion in FY18. It has no debt and currently trades at a price/earnings ratio of 9.80 and a book value of 1.02.
Debt-Free Penny Stocks Under Rs 50 #2 – Rajoo Engineers
CMP | 29 yen | Market Capitalization (Cr.) | ¥181 |
EPS | ¥250 | price earnings ratio | 13.40 |
ROCEMore | 22.8% | egg | 17.0% |
face value | ¥1.0 | book value | 16 yen |
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 margin | 12.20% |
Rajoo Engineers is a small manufacturer of extruders. We sell different types of machines with different end uses that can produce flexible packaging, pipe plants, N95 masks, lab equipment, cross lamination films, thermoforming and more.
CN Doshi started his company in a small village in Gujarat. Over the past 36 years, we have achieved Asia’s leading position among the same equipment manufacturers.
Rajoo has an international presence with exports accounting for over 50% of its turnover. We supply machines to over 60 countries around the world and 60% of our revenue comes from repeat customers.
With the exception of FY2020, net profit has consistently increased over the past four years from INR 0.8 billion in FY19 to INR 1.6 billion in FY22. On the other hand, in the most recent financial year his revenue was Rs 190 crore.
RoCE boasts a high return rate of 22.8% and RoE is 17.0%. It is a penny stock with no debt and is currently trading at a price/earnings ratio of 13.40.
Debt-Free Penny Stocks Under Rs 50 #3 – Manaksia Steels
CMP | ¥4,000 | Market Capitalization (Cr.) | 235 yen |
EPS | ¥370 | price earnings ratio | 11 |
ROCEMore | 17.0% | egg | 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 margin | 8.69% |
Manaksia Steels is a small steel manufacturing company producing cold rolled coils, hot dip galvanized steel and pre-painted profile sheets. Founded in 1972, it is the flagship company of the Manaksia Group.
Manaksia is a multi-site company with production facilities in India and Nigeria. Its operation is backward integrated for the galvanizing plant. Current monthly production capacity is 8,000 tons of cold rolled coils and 5,000 tons of color coated steel products.
The steel producer reported a net profit of Rs.350 crore on a turnover of Rs.611 crore for the 22nd fiscal year. He increased 21.23% from revenue of Rs 540 crore and net profit of Rs 27 million for the 21st fiscal year, net profit increased by 29.63%.
This is a negligible debt-to-equity stock with a debt-to-equity ratio of 0.15 for manufacturing only. Manaksia Steels is currently trading at his attractive book value of 0.88. Additionally, it has a high promoter ownership rate of 74.8%.
Debt-Free Penny Stocks Under Rs 50 #4 – GP Petroleums
CMP | ¥42.8 | Market Capitalization (Cr.) | 218 yen |
EPS | ¥1,000 | price earnings ratio | 6.30 |
ROCEMore | 8.56% | egg | 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 margin | 4.20% |
Founded in 1973, GP Petroleums is a debt free penny stock engaged in the manufacture of lubricants and greases. This small company manufactures automotive lubricants, industrial lubricants, engine oils and rubber processing fluids.
The installed capacity is 80,000 KL and the storage facility is 15,000 KL.
Their IPOL brand is known not only in India but abroad as well. The company has signed an agreement with his MAG LUBE, an established lubricant manufacturer in the Middle East, to manufacture and distribute IPOL lubricants internationally.
In addition, debt-free Penny shares have an exclusive agreement with Spanish oil giant Repsol for the processing, distribution, sale and marketing of its products in India.
GP Petroleums is in line with net profit, which did not decline in pandemic-affected fiscal years 2020 and 21. Overall, net profit increased from Rs. Rs 1.6 billion in FY18 to Rs 1.9 billion in FY22. During the same period, its revenue increased to Rs. 718 crore to rupees. Before 519 million.
Debt-Free Penny Stocks Under Rs 50 #5 – Airan
CMP | ¥16.7 | Market Capitalization (Cr.) | 209 yen |
EPS | ¥0.80 | price earnings ratio | 20.90 |
ROCEMore | 8.81% | egg | 7.14% |
face value | ¥2.0 | book value | ¥1,200 |
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 margin | 13.60% |
Airan was founded in the 1990s when founder Sandeep Agrawal started a computer coaching class. Deciding that the future had great opportunities, the company set out to process his IPO application for a public sector bank in 1995.
Over the past 30 years, Airan has diversified to offer a multitude of financial services including MICR clearing, cash management, IT and IT-enabled services. It now has a strong foothold in Information Technology (IT) and Information Technology Enabled Services (ITES).
Airan provides banking transaction processing and document management services for Internet service providers, payment banks, telecommunications companies and other businesses.
Revenue of this debt free penny stock is growing at a CAGR of 14.47% annually from Rs 5.8 billion in FY2020 to Rs 8.7 billion in FY22. It made a net profit of Rs 10 crore in FY22.
It has a high promoter stake of 72.4% and is currently trading at a slightly higher P/E ratio of 20.90 and a price-to-book ratio of 1.96.
List of debt free penny stocks under Rs 50
You’ve read more about the five debt-free penny stocks above.The list below highlights more such penny stocks.
company name | industry | CMP (Rupee) | Market Capitalization (Rs Cr) |
---|---|---|---|
PTL companies | lease | 32.2 | 427 |
Paspati Acrylon | fiber | 33.2 | 297 |
Manaxia Steels | steel | 33.8 | 221 |
GP Petroleums | lubricant | 42.8 | 218 |
Airan | ITES | 16.4 | 206 |
rajo engineer | industrial products | 29.4 | 181 |
LKP Securities | financial operations | 13.8 | 104 |
BCPL Rail Infrastructure | infrastructure | 47.6 | 80 |
investment and financial boom | financial operations | 45.3 | 69 |
Krishambia Forge | forging | 48.0 | 53 |
The conclusion is
In this article, we have looked at some of the penny stocks in India with no debt below Rs 50. But only low or zero debt is the only criteria for investing in penny stocks. It shouldn’t be. As a rule of thumb, the smaller the company, the more paranoid investors should be with their checklist. In addition to this, return rates, quarterly sales growth, and operating margin are also important filers.
What parameters, in your opinion, should make a good checklist for investing in penny stocks? Let us know in the comments below.
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Vikalp Mishra is a Commerce graduate from the University of Delhi. He likes to write about finance, money and business. He is a voracious reader with a genuine interest in investing. Please send an email to vikalp.mishra@tradebrains.in.
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