4 High Growth Stocks with Low Debt to Watch for Strong Returns
High Growth Stocks : In the current economic landscape, where many companies grapple with financial challenges, a select group of firms have distinguished themselves by maintaining low debt levels while achieving impressive revenue growth. Such companies are better equipped to navigate economic fluctuations, ensuring both financial stability and sustainable expansion. Here, we spotlight four companies that have consistently reported low debt-to-equity ratios and high revenue Compound Annual Growth Rates (CAGR), making them worthy of investor attention.
1. Varroc Engineering Ltd
Varroc Engineering Ltd, the flagship entity of the Aurangabad-based Varroc Group, specializes in developing automotive products and assembling sub-systems for the automobile, consumer durables, and white goods industries. The company operates through three primary divisions: Polymer, Electrical, and Engineering.
As of March 5, 2025, Varroc Engineering’s shares were trading at ₹425.35, reflecting a 1.03% increase from the previous close. The company’s market capitalization stands at ₹64,988 crore. Notably, Varroc has achieved a 3-year revenue CAGR of 20%, underscoring its robust growth trajectory.
Financially, Varroc has made significant strides in reducing its debt. The net debt-to-equity ratio improved to 0.64 in FY24 from 1.27 in FY23, highlighting the company’s commitment to strengthening its balance sheet.
2. H.G. Infra Engineering Ltd
H.G. Infra Engineering Limited (HGIEL) is a prominent Indian road infrastructure company specializing in Engineering, Procurement, and Construction (EPC) services. The firm focuses on developing and maintaining roads, bridges, flyovers, and other infrastructure projects.
As of February 25, 2025, HGIEL’s shares were trading at ₹1,056.55. The company boasts a market capitalization of ₹68,840 crore. With a 3-year revenue CAGR of 27%, HGIEL has demonstrated consistent growth in its operations.
The company’s financial health is further evidenced by its debt-to-equity ratio, which stood at 0.91 as of February 2025.
Additionally, HGIEL reported a Return on Capital Employed (RoCE) of 28.25% and a net profit margin of 10.13% for the fiscal year ending March 2022, reflecting efficient capital utilization and profitability.
3. AGI Infra Ltd
AGI Infra Limited is engaged in the development of residential and commercial projects, offering a diverse range of properties from affordable homes to high-end flats, penthouses, villas, and commercial spaces like offices and retail outlets. Notable projects include AGI Business Centre, AGI Pride, Jalandhar Heights (I, II, III), and AGI SKY Garden, among others.
As of the latest available data, AGI Infra’s shares were trading at ₹838.75, marking a 1% growth compared to its previous closing price. The company has achieved a 3-year revenue CAGR of 38.4%, indicating strong growth in its operations.
AGI Infra maintains a minimal debt-to-equity ratio of 0.55, reflecting prudent financial management.
4. Bondada Engineering Ltd
Bondada Engineering Ltd provides Engineering, Procurement & Construction (EPC) and Operations & Maintenance (O&M) services in the telecom and solar energy sectors. The company’s major clients include BSNL, Reliance Jio, Airtel, Indus Towers, and BHEL, among others. As of October 2024, Bondada Engineering reported an order book worth ₹5,342 crore, indicating a strong pipeline of projects.
As of the latest available data, Bondada Engineering’s shares were trading at ₹387.70, marking a 3% increase compared to its previous closing price. The company has achieved a 3-year revenue CAGR of 40%, showcasing robust growth.
Bondada Engineering maintains a minimal debt-to-equity ratio of 0.54, highlighting its strong financial position.
Financial Snapshot
Below is a comparative overview of key financial metrics for these companies:
| Company | Market Capitalization (₹ crore) | Share Price (₹) | Debt-to-Equity Ratio | 3-Year Revenue CAGR (%) |
|---|---|---|---|---|
| Varroc Engineering Ltd | 64,988 | 425.35 | 0.64 | 20 |
| H.G. Infra Engineering Ltd | 68,840 | 1,056.55 | 0.91 | 27 |
| AGI Infra Ltd | Data Not Available | 838.75 | 0.55 | 38.4 |
| Bondada Engineering Ltd | Data Not Available | 387.70 | 0.54 | 40 |
Note: Market capitalization and share price data are as of the latest available dates.
Conclusion
Investing in companies with low debt levels and high revenue growth can be a prudent strategy, especially in uncertain economic times. The four companies highlighted above—Varroc Engineering Ltd, H.G. Infra Engineering Ltd, AGI Infra Ltd, and Bondada Engineering Ltd—have demonstrated strong financial performance and growth prospects. However, potential investors should conduct thorough due diligence and consider their individual financial goals and risk tolerance before making investment decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.