3 Fundamentally strong stocks with high growth and low debt to add to your watchlist

Low Debt companies reduce the risk of financial distress or bankruptcy and also have better Net profit margins. These companies usually have a strong balance sheet, which investors find attractive. 

Stocks that have high CAGR growth show consistent growth in the company’s Net Profit and Revenue, and this compounded growth, drives exponential returns in the share price, making them highly attractive to investors seeking long-term wealth creation. 

1. Dixon Technologies

Dixon Technologies (India) Limited is a leading electronics manufacturing services (EMS) provider, specializing in consumer electronics, home appliances, lighting, mobile phones, and security systems. Established in 1993, the company partners with top global and Indian brands for contract manufacturing, including televisions, smartphones, LED lights, and washing machines.

The company has achieved a Net Sales CAGR of 32.09 percent over the last 10 years, reflecting strong and consistent growth. Its sales have increased from Rs. 1,094 crores in FY14 to Rs. 17,691 crores in FY24.

Their total borrowing when compared to total liabilities stands at 7.00 percent. Total borrowing for FY24 stood at Rs. 489 Crore compared to total liabilities of Rs. 6,990 Crores.

With a market capitalization of 79,905 crore, the stock is currently trading at Rs. 13,300, which is significantly lower than its 52-week high of Rs 19,148. This reflects a decline of 30.54 percent from its 52-week high.

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2. Bharat Electronics

Bharat Electronics Limited (BEL) is a leading Indian aerospace and defense company specializing in the design, development, and manufacturing of advanced electronic systems for the armed forces, and as a government-owned enterprise under the Ministry of Defence, BEL plays a crucial role in India’s defense sector.

The company has achieved a Net Sales CAGR of 12.01 percent over the last 10 years, reflecting strong and consistent growth. Its sales have increased from Rs. 6,518 crores in FY14 to Rs. 20,268 crores in FY24.

Their total borrowing when compared to total liabilities stands at 0.15 percent. Total borrowing for FY24 stood at Rs. 63 Crore compared to total liabilities of Rs. 39,524 Crores

With a market capitalization of 2,04,746 crore, the stock is currently trading at Rs. 280, which is significantly lower than its 52-week high of Rs 340. This reflects a decline of 17.64 percent from its 52-week high.

3. Abbott India

Abbott India is a leading pharmaceutical company and a subsidiary of Abbott, a global healthcare giant. The company focuses on developing, manufacturing, and marketing a wide range of medicines across therapeutic areas such as gastroenterology, women’s health, cardiology, metabolic disorders, and neurology.

The company has achieved a Net Sales CAGR of 10.00 percent over the last 10 years, reflecting strong and consistent growth. Its sales have increased from Rs. 2,276 crores in FY14 to Rs. 5,849 crores in FY24.

Their total borrowing when compared to total liabilities stands at 1.59 percent. Total borrowing for FY24 stood at Rs. 83 Crore compared to total liabilities of Rs. 5,193 Crores.

With a market capitalization of 62,834 crore, the stock is currently trading at Rs. 29,570, which is slightly lower than its 52-week high of Rs 31,898. This reflects a decline of 7.29 percent from its 52-week high.

Written By Abhishek Das

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