10 Best Debt Free Penny Stocks to Buy

debt free penny stocks

Penny stocks are stocks that trade at low prices, have a very tiny market capitalization, are largely illiquid, and typically appear on a smaller exchange. In India’s active and diverse stock market, debt-free penny stocks below ₹50 offer investors significant potential at a modest entry point.

In this blog, we’ll investigate the top 10 debt-free penny stocks under ₹50, throwing light on their fundamentals, prospective growth drivers, and investment dangers.

Top 10 Penny Stocks in India Below ₹50

Penny stocks, which are frequently seen as high-risk investments, have the potential to provide big returns to investors who are willing to accept the risk. To help investors looking for growth prospects in the Indian market, we’ve produced a list of the best ten debt-free penny stocks under ₹50 to purchase in India that could outperform in 2024.

S.No.

Stock

Market Capitalization (₹ crores)

Dividend Yield (%)

1 Yr Return

PE Ratio

Net Cash Flow

(₹ crores)

TTM EPS

(₹)

ROE (%)

1

Brightcom Group

2,476.73

0.66

185.54%

2.15

666.74

7.01

19.58

2

PTL Enterprises Ltd

562.60

4.09

30.63%

27.65

-0.27

1.78

2.79

3

Bartronics India Ltd

699.31

0

156.59%

1.67

-5.73

14.42

78.07

4

Easy Trip Planners Ltd.

7,745.59

0

-4.65%

55.46

-32.96

0.85

36.27

5

Swiss Military Consumer Goods

556.95

0.63

97.95%

65.20

19

0.39

12.5

6

Jaiprakash Power Ventures Ltd

13,055.84

0

238.39%

31.79

-27.57

1.49

8.91

7

Mishtann Foods

1,875.61

0.01

146.82%

7.34

-0.20

2.56

33.23

8

NCL Research and Financial Services Ltd

73.85

0

72.5%

43.10

-0.14

0.02

0.48

9

Century Extrusions Ltd

151.04

0

81.07%

22.65

7.79

9.16

0.85

10

KBS India Ltd

104.75

0

2.54%

0

-0.14

-0.06

0.61

Note: This PSU stocks list is for informational purposes only. We are not SEBI registered and do not endorse any company or pressure you to buy stocks. Please conduct your research or consult a financial advisor before investing.

1. Brightcom Group

Brightcom Group is the first on our list of debt-free penny stocks under ₹50, which returned 200.25% during a three-year period, while the Nifty Smallcap 100 returned 87.89%. Brightcom Group has been owned by 81.62% of the public and 1three years The declared net profit of ₹1370.99 cr is 0.51 times smaller than the operating cash flow of ₹702.55 cr

2. PTL Enterprises Ltd

The stock returned 103.84% over three years, while the Nifty Smallcap 100 returned 87.89%. Over the past five years, the company has maintained an effective average operating margin of 90.99%.

It has an effective Cash Conversion Cycle of 0 days and good cash flow management, with a CFO/PAT ratio of 1.01.

3. Bartronics India Ltd

Bartronics India Ltd returned 856.25% over three years, while the Nifty Smallcap 100 returned 87.89%. The table reflects that the company has a strong TTM EPS which makes it a good investment. The low PE ratio and TTM EPS of 14.42 reflect that investors get good returns on their investments.

4. Easy Trip Planners Ltd.

The company has maintained an effective average operating margin of 21.79% over the last five years. The company has a large promoter holding of 64.30% and a strong liquidity position, with a current ratio of 2.21. Easy Trip Planners has a 64.30% promoter stake and a 35.70% public holding.

5. Swiss Military Consumer Goods

Swiss Military Consumer Goods Limited trades and markets lifestyle products. It provides travel gear, luggage and baggage, travel accessories, electronics, and other connected things. The company intends to establish its first completely owned production facility for baggage and travel accessories in Faridabad.

Swiss Military Consumer Goods’ promoter stake is 63.85%, with the public holding 36.15%. The FII holding was 0.05% on March 31, 2024, and had grown from the previous quarter.

6. Jaiprakash Power Ventures Ltd

Jaiprakash Power Ventures has a 24% promoter stake and 76.00% public ownership. The company made a net profit of 588.79 crores in the last quarter. The FII position in Jaiprakash Power Ventures was 6.06% as of March 31, 2024. The FII holding has grown since the past quarter.

7. Mishtann Foods

Mishtann Foods returned 712.98% over three years, while the Nifty Smallcap 100 returned 87.89%. The company’s fundamentals are also robust, with recent fiscal years seeing improvements in assets and revenue. The company has offered its rights issue at a premium of around 25%

8. NCL Research and Financial Services Ltd

NCL Research and Financial Services Ltd trades a variety of textile products in India. It exports high-quality fabrics and invests in stocks and securities. The company had a QoQ revenue increase of 300.69%, the greatest in the prior three years. It invested ₹24.54 crore, representing a 620.06% year-on-year growth.

9. Century Extrusions Ltd

Century Extrusions has a 52.04% promoter holding and a 47.96% public holding. The FII holding in Century Extrusions was 0.14% as of March 31, 2024. Rising Net Cash Flow and Cash from Operating Activity indicate that the stock is positive right now and worth investing in.

10. KBS India Ltd

Over the last three years, KBS India Ltd has grown its profits by 35.39%. The company spent 1.37% of its operational revenues on interest charges and 44.65% on labor costs in the fiscal year ending March 31, 2023.

Factors to Consider Before Investing

Investing in debt-free penny stocks under ₹50 can be enticing for investors looking for potential high returns Investingcost. Here are several factors to consider before investing:

  • Evaluate the company’s fundamental strength, including its business model, sales growth, profitability, and cash flow.

  • Review the company’s financial documents, particularly the balance sheet, cash flow statement, and debt-related disclosures, to ensure that it is indeed debt-free.

  • Before investing in debt-free penny stocks, think about your risk tolerance and investment time horizon.

  • When investing in stocks, consider your financial goals and time horizon. Determine if you are making long-term or short-term investments, and then alter your plan accordingly.

  • To assess if a stock is cheap or overvalued, consider valuation metrics such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and price-to-sales (P/S).

Conclusion

Investing in debt-free penny stocks under ₹50 might yield huge gains in a short period. While penny stocks are inherently riskier, concentrating on financially strong companies with proven track records can help to alleviate some of the risks.

Identifying debt-free penny stocks with good fundamentals might help investors discover hidden gems in the Indian risks market and potentially reap big returns over time.

FAQs

1. What are the risks associated with investing in penny stocks in India?

Penny stocks in India are highly volatile, lack liquidity, are financially insatiable and contain legal risks as well. Even after all these risks, the returns are substantial. 

2. How to check if a penny stock is debt-free?

You can be sure if a penny stock is debt-free by accessing the financial statement of the company, reviewing the balance sheet, looking closer at the notes and monitoring changes over time.

3. Which debt-free penny stocks under ₹50 should I buy?

You can invest in Swiss Military Consumer Group, Bartronics India Ltd, Brightcom Group etc. However, you must conduct your research and if help is required follow our guide above.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.


LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.

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