In this article I will list out Micro Cap companies which have market capitalization less than 1,000 crore and more than 500 crore. I have not considered below 500 crore micro cap companies as they become bit risky. Also the list may become bit large due to this. So I have confined the list. In case you are interested in smaller companies with above criteria then you can ping me on Telegram for the same. The telegram channel MoneyPati has chat enabled so you can add comment and I will respond to the query.
Now coming back to the topic of Micro cap companies which are debt free and high promoter holding. Debt free is good sign for any company and it becomes very good for small ones as they are not fueling the growth by debt. This is generally good sign. Debt companies are the ones which get into trouble first. So it is preferable to list the debt free companies first. Also high promoter holding is sometimes good sign showing faith of the promoters in the company itself.
Now lets discuss the companies one by one. Note this is not stock recommendation. The idea behind this it to bring these relatively unknown companies to you so that your circle of companies increase and you can analyze them further and see if they fit into your investment thesis. The stocks are ordered in way of their market capitalization.
Likhita Infrastructure is newly listed company. It is debt free company with promoter holding of 70%. It also pays regular dividend which is positive for the company. It has market cap approx 900 crore as of this writing. You can get more details about the company from the link above. It is present in the portfolio Ashish Kacholia one of the top investor of India.
Vardhaman holdings is holding company of the Vardhaman group. It has two subsidiary company namely Vardhaman textiles and Vardhaman spinning and general mills. It is debt free company with promoter holding of 74.9% which is close to maximum 75% holding. It is trading below book value. It has market cap of close to 900 crore and does pay regular dividend. It is present in the portfolio of Anil Goel one of the top investor of India. You can browse above link to get more details about the company.
Kalyani Investment company
It is again a holding company. It is holding company of Kalyani group of company. It is trading at book value vs price ratio of .16 which is at steep discount. Note holding companies to trade at steep discount but this one is under valued even by that standard. It is debt free company with promoter holding close to 74.97% which is nearly 75% the maximum allowed. The market cap of company is close to 900 crore. It is present in the portfolio of Hitesh Doshi.
Quick Heal technology
It is technology sector company. You might have heard name of the company. It is famous for security solutions like Antivirus. It may be that you have used solution from this company. It is debt free company with market share of around 73%. It pays good dividend of more than 2% at current market price. The market cap of the company is close to 800 crore.
Summit Securities limited
It is the third holding company in the list. It is holding company of CEAT (the tyre company), KEC International and Zensar technology. These companies are listed on stock exchanges. As of this writing it is trading at steep discount of .13 of the book value vs current price parameter. It has market cap of 650 crore. The promoter holding is 74.65% with no debt. One interesting thing is that the company is not paying dividend. Typically the holding companies pay dividend.
Morganite crucible India limited
It is multinational company. The UK based company Morgan Advanced Materials is parent of this company. It is Refractory sector company which is very less represented sector. There are not too many companies listed in this space.It is debt free company with parent having close to 75% share holding. It also pays good dividend with dividend yield close to 1%.