Companies that have no debt on their balance sheet are regarded as debt-free, and investors can keep an eye on their stock prices in the context of rising interest rates, since these companies may have enormous growth potential in the future. An investment in a debt-free company may not always be wise since investors also need to consider the company’s fundamentals, stock performance, shareholding pattern, dividend history, market cap, and other factors. Here are three debt-free stocks that have produced multibagger returns over the course of a year and may be tracked in the coming week in the current tumultuous market, merely for informational purposes and not as trading recommendations.
National Standard (India) Ltd
Real estate firm National Standard (India) Ltd. is a small cap company with a market cap of Rs. 10,801.20 Crore. The company operates in the real estate development industry. According to the statistics on Value Research, National Standard (India) has no debt, making it virtually debt-free.
In the last 1 year, the stock has risen from ₹1298.70 as of 26th July 2021 to the current level of ₹5,400.00 which logs in a multibagger return of 315.80% in that period. The stock has dropped 42.46 per cent YTD so far in 2022, unfortunately. The stock has fallen by 49.54 per cent over the past six months and by 10.95 per cent over the past month.
The stock has dropped 0.05 per cent over the past five trading days, and on Friday it closed at ₹5,400.00 per share, down 0.09 per cent from the previous close. On the BSE, the stock had touched a 52-week-high of ₹19,000.00 on 18/11/2021 and a 52-week-low of ₹1,178.00 on 22/07/2021 which indicates that at the current level the stock is trading 71% below the 52-week-high and 358% above the 52-week-low.
The stock is trading at 118.08 book value per share, which translates to a high PB of 45.73 at the current price of Rs. 5,400. The stock is overvalued in comparison to competitors KNR Construction, PNC Infratech, H.G. Infra Engineering, and Rail Vikas due to its high PE of 430.97.
Global Education Ltd
The education sector-focused Global Education Ltd. is a small cap company with a market cap of ₹194.80 Crore. It is a supplier of educational services and a professional consulting organisation with its primary office in Mumbai and a branch in Nagpur. Over 36+ significant institutions and organisations seek assistance and consulting services from Global Education in the area of business management. According to Value Research’s data, Global Education Ltd. is now debt-free and has no debt. The stock price climbed from ₹47.75 on July 26, 2021, to ₹196.00 as of now, representing a multibagger return of 310.47 per cent.
The stock has risen from ₹70.95 on January 3, 2022, to the current level on a YTD basis, representing a multibagger return of 176.25 per cent so far in 2022. The stock rose from ₹88.15 on January 25, 2022, to the current level over the previous six months, delivering a multibagger return of 122.35 per cent. On Friday, the stock dropped 1.93 per cent from its previous close and settled at ₹196.00 per share.
The stock has a 52-week high of ₹206.00 and a 52-week low of ₹39.05, putting it 4.85 per cent below its 52-week high and 401 per cent above its 52-week low at the present price level. A company with a strong TTM EPS Growth rate, which is now ₹13.07 Cr. Additionally, it is a profitable company with a low PE of 14.64 and a high ROCE of 30.99 per cent, which is the highest level since March 2020.
Chennai Ferrous Industries Ltd
With a market valuation of ₹81.64 crore, Chennai Ferrous Industries Ltd. is a small cap company which operates in the mining and metals industries. According to Value Research’s statistics, Chennai Ferrous Industries is a debt-free company that also produced multibagger returns in a single year. The stock rose from ₹10.11 on July 26, 2021, to ₹224.05 currently, representing a multibagger return of 2,116.12 per cent, in only 1 year.
The stock has climbed from ₹100 on January 3, 2022, to the current level on a YTD basis, representing a multibagger return of 124.05 per cent so far in 2022. The stock has generated a multibagger return of 138.73 per cent during the past six months. On Friday, the stock dropped 1.90 per cent from its previous close and settled at ₹224.05 per share.
On the BSE, the stock had touched a 52-week-high of ₹347.45 on 16/06/2022 and a 52-week-low of ₹10.11 on 26/07/2021 which indicates that at the current price level, the stock is trading 35% below the 52-week-high and 2116% above the 52-week-low. For the quarter that ended in March 2022, the company posted its highest EPS of ₹70.20 Cr, and because it has a low PE of 3.22 compared to rivals like Jindal Steel, Lloyds Metals, Jai Balaji Ind, and MSP Steel & Power, it is considered undervalued.
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