Sayantan Chakraborty
Low Debt Smallcap Stock: Stock market experts always advise investors to be careful when investing in a smallcap stock. But some smallcap stocks with minimal debt can give multibagger returns. Such is the case with this low debt smallcap stock.
An investment of ₹1 Lakh in this smallcap stock became ₹9.30 Lakh within ten years. And in 3 years, an investment of ₹1 Lakh became ₹3.19 Lakh. This multibagger smallcap stock has a debt-to-equity of 0.22 and, at the moment, is trading at a low P/E ratio of 14. Below are the details.
About Vindhya Telelinks
Vindhya Telelinks [NSE: VINDHYATEL] is a part of MP Birla Group. The company is involved in the manufacturing of telecommunication cables and wires. The company also manufactures railway signaling and quad cables. The company also has its arm in the EPC (Engineering, Procurement, and Construction) business.
Most of the EPC projects that the company undertakes comes from the Central Government of India. Vindhya Telelinks has executed infrastructure projects in multiple Indian states and UTs.
The client list of the cable business of Vindhya Telelinks includes – BSNL, MTNL, Indian Railways, Defense (Indian Army), NTPA, SAIL, Bharti Airtel, Reliance Jio Infocomm, etc.
Fundamentals Of Vindhya Telelinks
Vindhya Telelinks is low debt smallcap stock with a market cap of around ₹2,000 Crore.
According to September 2022 quarterly result declared by the company, the total debt of Vindhya Telelinks stands at ₹718 Crore. While the company maintains a Reserves of ₹3,209 Crore, covering both short-term and long-term borrowings.
In the last three years, the company has lowered its debts drastically. The total borrowings of Vindhya Telelinks in March 2022 stood at ₹573 Crore. Whereas in March 2020, the company’s total debt stood at ₹892 Crore.
The company’s shares are trading at a discount compared to its book value. The book value of each share of Vindhya Telelinks is ₹2,718, and as per the latest share price, the company is trading at a book value of 0.62.
In the December 2022 quarter, the company recorded a revenue of ₹638 Crore compared to the previous quarter’s revenue of ₹573 Crore. In the December quarter of 2021, Vindhya Telelinks’ revenue stood at ₹302 Crore.
The Net Profit of Vindhya Telelinks on a Sequential basis was up by 55.55%. In the December 2022 quarter, the company reported a Net Profit of ₹28 Crore. While the previous quarter, the company’s Net Profit stood at ₹18 Crore.
On a Y-o-Y basis, Vindhya Telelinks’ Net Profit is down by 17.64%. In the December 2021 quarter, the company registered a Net Profit of ₹34 Crore.
For FY 21-22, Vindhya Telelinks’ revenue figure stood at ₹1,324 Crore, and the company reported a Net Profit of ₹193 Crore.
In FY 20 – 21, the revenue of Vindhya Telelinks stood at ₹1,502 Crore, and the reported Net Profit stood at ₹270 Crore.
Vindhya Telelinks Share Price History
On 21st April 2023, the shares of Vindhya Telelinks closed the trading day at ₹1,692.10/-, up ₹10.35/- or 0.62% compared to the previous day’s closing price.
The shares of Vindhya Telelinks were trading range bound within a month’s time frame and are up by ₹66.45/- or 4.083% on a closing basis. On 22nd March 2023, the closing price of the company’s shares was ₹1,625.65/-.
On the YTD (Year-to-Date) chart, the stock is down by ₹20.85/- or 1.21% on a closing basis. On 2nd January 2023, shares of Vindhya Telelinks closed at ₹1,712.95/-.
On the yearly chart, shares of Vindhya Telelinks are up by ₹539.65/- or 46.82% on a closing basis. On 22nd April 2022, the company’s shares closed the trading day at ₹1,152.45/-.
On the 3-year chart, the stock is up by ₹1,160.55/- or 218.33% on a closing basis. On 22nd April 2020, shares of the multibagger company Vindhya Telelinks closed at ₹531.55/- per share.
On the 5-year chart, the stock price of Vindhya Telelinks is up by ₹566.10/- or 50.27% on a closing basis. On 20th April 2018, the closing price of the company’s shares was ₹1,126/-.
In the last ten years, Vindhya Telelinks gave a multibagger return of 829.72%. Shares of the smallcap company closed at ₹182/- on 22nd April 2013. The share price of Vindhya Telelinks appreciated by ₹1,510.10/- per share in ten years.
As of 21st April 2023, the 52-Week High of Vindhya Telelinks is ₹1,828.15/- whereas the 52-Week Low of Vindhya Telelinks is ₹846.85/-.
Investment Of ₹1 Lakh in Vindhya Telelinks
An investment of ₹1 Lakh a year ago in Vindhya Telelinks shares would have fetched 87 shares at the cost of ₹1,152.45/- per share. As of 21st April 2023, 87 shares of Vindhya Telelinks is worth ₹1,47,212.70/-.
Investing ₹1 Lakh in Vindhya Telelinks’ stock three years ago would have fetched 189 shares at the cost of ₹531.55/- per share. As of the latest share price of Vindhya Telelinks, 189 shares are now worth ₹3,19,806.90/-.
Investing the same ₹1 Lakh in shares of Vindhya Telelinks five years ago would have fetched 89 shares at the cost of ₹1,126/- per share. As of 21st April 2023, the value of 89 shares of Vindhya Telelinks stands at ₹1,50,596.90/-.
If we go back ten years, an investment of ₹1 Lakh in shares of Vindhya Telelinks would have fetched 550 shares at the cost of ₹182/- per share. As of 21st April 2023, 550 shares of Vindhya Telelinks is worth ₹9,30,655/-.
In ten years, the shares of Vindhya Telelinks gave a multibagger return of 830.65% to its shareholders.
To visualize the power of long-term investment and compounding even more, we can go back 20 years.
On 22nd April 2003, an investment of ₹1 Lakh in the stock of Vindhya Telelinks would have fetched 5,781 shares at the cost of ₹17.30/- per share.
And as of 21st April 2023, 5,781 shares of Vindhya Telelinks is worth ₹97,82,030.10/-. Vindhya Telelinks gave a whopping return of 8782.03% within 20 years.
Vindhya Telelinks Dividend News
Vindhya Telelinks is an excellent dividend-paying company. The company paid a dividend of ₹10/- per share to its shareholders in 2022, and the Ex-Dividend date was 15th September 2022.
The company’s shareholders received a dividend of ₹10/- per share in 2021 and 2020. And the Ex-Dividend dates were 15th September 2021 and 10th August 2020, respectively.
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