4 Midcap Low Debt Stocks to Watch for Future Multibagger Potential: Dixon, Dabur, Mphasis and Ajanta Pharma
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Dixon Rs 11,191. Dabur Rs 363. Mphasis Rs 2,480. Ajanta Pharma Rs 3,283.90. Market caps from Rs 41,336 crore to Rs 75,636 crore. Data as of 23 Oct 2026.
Quick Answer
Dixon, Dabur, Mphasis and Ajanta Pharma are the 4 picks in this low debt stocks watchlist, with market caps between Rs 41,336 crore and Rs 75,636 crore. Dixon stands out for the highest return on equity at 30.76%, while Dabur offers 5.18% revenue growth in FY26. PE ratios run from 24.35 to 36.42, so compare each one with its industry PE before investing. All figures are as of 23 October 2026.
Low debt stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Dixon, Dabur, Mphasis and Ajanta Pharma meet that test, with market caps from Rs 41,336 crore to Rs 75,636 crore and Dixon offering the highest return on equity at 30.76%. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a debt-to-equity ratio below 0.3 and a return on equity of at least 15 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a debt-to-equity ratio below 0.3 and a return on equity of at least 15 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap between Rs 30,000 crore and Rs 1 lakh crore. Investors screening low debt stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Low Debt Stocks and Why Do They Attract Multibagger Interest?
Low debt stocks are shares of mid sized companies that run on mostly their own money, which keeps interest costs low and protects profit in slow years. The four here cover electronics manufacturing, consumer goods, IT services and pharmaceuticals.
Low debt and high returns together signal a business that funds its own growth. For low debt stocks, both FY26 and the latest quarter showed growth. With low debt stocks, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for low debt stocks are complete. Read each company’s latest results and exchange filings before acting on low debt stocks.
Low Debt Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 23 October 2026. Mphasis has the lowest PE of the group at 24.35, while Dixon posts the highest return on equity at 30.76%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Dixon Technologies | 11,191 | 75,636 | 36.33 | 45.19 | 30.76% | 0.21 | 9,600.00 to 17,299.00 |
| Dabur India | 363 | 67,816 | 34.85 | 34.68 | 16.59% | 0.11 | 363.00 to 534.00 |
| Mphasis | 2,480 | 46,512 | 24.35 | 18.49 | 17.34% | 0.24 | 2,013.00 to 2,975.00 |
| Ajanta Pharma | 3,283.90 | 41,336 | 36.42 | 36.35 | 23.33% | 0.06 | 2,380.20 to 3,796.00 |
Dixon: 71.44% Profit CAGR Since FY22
Dixon Technologies is an electronics manufacturing services company that makes televisions, phones, appliances and lighting for brands. It reported FY26 revenue of Rs 49,585.84 crore, up 27.53% year on year, and net profit of Rs 1,644.25 crore, up 33.40%. Net profit has compounded at 71.44% a year since FY22, while revenue has grown 46.72% a year. Operating margin was 3.95% in FY26. The debt-to-equity ratio is 0.21.
In the June 2026 quarter, revenue rose 25.23% to Rs 16,075.95 crore and net profit grew 156.35% to Rs 717.83 crore. The share price has gained 114.81% over five years. The stock trades at a PE of 36.33 against an industry PE of 45.19, below the sector average, with a return on equity of 30.76%.
Dabur: Profit Compounding at 1.77% a Year
Dabur India is a leading Ayurveda and natural health care company with brands in hair care, oral care, juices and health supplements. It reported FY26 revenue of Rs 13,792.34 crore, up 5.18% year on year, and net profit of Rs 1,868.69 crore, up 7.37%. Revenue has compounded at 5.15% a year since FY22. Operating margin was 23.00% in FY26. The debt-to-equity ratio is 0.11, which keeps interest costs low.
The stock trades at a PE of 34.85 against an industry PE of 34.68, with a return on equity of 16.59%. The dividend yield is 2.16%. In the June 2026 quarter, revenue rose 10.95% to Rs 3,936.95 crore and net profit grew 15.32% to Rs 586.16 crore. Domestic institutions raised their holding from 16.24% in June 2025 to 18.72% in June 2026.
Mphasis: Profit Compounding at 6.81% a Year
Mphasis provides IT, cloud and application services to banking, insurance and technology clients. It reported FY26 revenue of Rs 16,205.54 crore, up 11.88% year on year, and net profit of Rs 1,862.60 crore, up 9.43%. Net profit has compounded at 6.81% a year since FY22, while revenue has grown 7.53% a year. Operating margin was 20.58% in FY26. The debt-to-equity ratio is 0.24.
In the June 2026 quarter, revenue rose 17.14% to Rs 4,466.91 crore and net profit grew 10.82% to Rs 489.51 crore. Domestic institutions raised their holding from 37.07% in September 2025 to 45.85% in September 2026. The stock trades at a PE of 24.35 against an industry PE of 18.49, with a return on equity of 17.34%. The dividend yield is 2.54%.
Ajanta Pharma: Return on Equity of 23.33%
Ajanta Pharma sells branded generics in ophthalmology, dermatology, cardiology and pain management in India, Africa and Asia. It reported FY26 revenue of Rs 5,624.93 crore, up 18.60% year on year, and net profit of Rs 1,056 crore, up 14.73%. Net profit has compounded at 10.33% a year since FY22, while revenue has grown 12.94% a year. Operating margin was 28.74% in FY26. The debt-to-equity ratio is 0.06, which keeps interest costs low.
The stock trades at a PE of 36.42 against an industry PE of 36.35, with a return on equity of 23.33%. In the June 2026 quarter, revenue rose 27.68% to Rs 1,696.86 crore and net profit grew 30.89% to Rs 334.22 crore. The share price has gained 125.31% over five years and 35.42% over the past year. Domestic institutions raised their holding from 17.90% in September 2025 to 21.94% in September 2026.
Low Debt Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these low debt stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Dixon | 49,585.84 | 1,644.25 | 27.53% | 46.72% | 71.44% | 6.43% |
| Dabur | 13,792.34 | 1,868.69 | 5.18% | 5.15% | 1.77% | 24.27% |
| Mphasis | 16,205.54 | 1,862.60 | 11.88% | 7.53% | 6.81% | 20.04% |
| Ajanta Pharma | 5,624.93 | 1,056 | 18.60% | 12.94% | 10.33% | 30.41% |
Check the Univest Screener for live data on these low debt stocks
Institutional Holding in Dixon, Dabur, Mphasis and Ajanta Pharma
Institutional holding shows who is backing these low debt stocks alongside the promoter. The table uses the latest reported quarter for each. Mphasis has the deepest institutional backing, with FII and DII together holding 65.24% as of September 2026. Domestic institutions increased their holding over the past year in Dabur (from 16.24% to 18.72%), Mphasis (from 37.07% to 45.85%) and Ajanta Pharma (from 17.90% to 21.94%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Dixon | 28.50% | 18.96% | 28.71% | 23.83% | September 2026 |
| Dabur | 66.24% | 9.66% | 18.72% | 5.37% | June 2026 |
| Mphasis | 30.53% | 19.39% | 45.85% | 4.23% | September 2026 |
| Ajanta Pharma | 63.47% | 7.63% | 21.94% | 6.96% | September 2026 |
Risks to Weigh in Low Debt Stocks
Being careful with low debt stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Mphasis trades at a PE of 24.35 against an industry PE of 18.49, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Low Debt Stocks
Picking from low debt stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (18.49 to 45.19) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among low debt stocks, Dixon stands out for the highest return on equity at 30.76%, Dabur for 5.18% revenue growth in FY26, Mphasis for the lowest PE of the group at 24.35 and Ajanta Pharma for the biggest five-year price gain at 125.31%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing low debt stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Low Debt Stocks to Watch
Which are the best low debt stocks to watch for multibagger potential?
Ans. Dixon, Dabur, Mphasis and Ajanta Pharma are the 4 names this list highlights, with market caps of Rs 75,636 crore, Rs 67,816 crore, Rs 46,512 crore and Rs 41,336 crore respectively. Dixon is notable for the highest return on equity at 30.76%. Dabur stands out for 5.18% revenue growth in FY26. Mphasis offers the lowest PE of the group at 24.35. Ajanta Pharma brings the biggest five-year price gain at 125.31%. These are watchlist names for low debt stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Dixon a good stock for long-term investors?
Ans. Dixon has a return on equity of 30.76%, a PE of 36.33 against an industry PE of 45.19 and a market cap of Rs 75,636 crore. Net profit has compounded at 71.44% a year since FY22, and FY26 revenue rose 27.53% while June 2026 quarter net profit grew 156.35%. Long-term returns in low debt stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Ajanta Pharma become a multibagger from here?
Ans. Ajanta Pharma has already gained 125.31% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in low debt stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 10.33% a year since FY22, and FY26 revenue rose 18.60%. At a PE of 36.42 against an industry PE of 36.35, valuation should be checked against that growth before investing.
What is the market cap of Dixon, Dabur, Mphasis and Ajanta Pharma?
Ans. As of 23 October 2026, Dixon has a market cap of Rs 75,636 crore, Dabur has a market cap of Rs 67,816 crore, Mphasis has a market cap of Rs 46,512 crore and Ajanta Pharma has a market cap of Rs 41,336 crore. All of them qualify as midcaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on low debt stocks.
What are the risks of investing in low debt stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Mphasis trades at a PE of 24.35 against an industry PE of 18.49, so earnings growth needs to hold up.
Why is Mphasis trading at a PE of 24.35?
Ans. Mphasis’ PE of 24.35 compares with an industry PE of 18.49. The market is paying a premium for a return on equity of 17.34% and latest-quarter profit growth of 10.82%, which also means the stock is more sensitive if growth slows. Investors in low debt stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Dixon, Dabur, Mphasis and Ajanta Pharma?
Ans. As of the latest reported quarter, FII and DII together hold 47.67% of Dixon (18.96% and 28.71%), 28.38% of Dabur (9.66% and 18.72%), 65.24% of Mphasis (19.39% and 45.85%) and 29.57% of Ajanta Pharma (7.63% and 21.94%). Rising institutional holding is a useful signal in low debt stocks, though it should be read with earnings trends rather than on its own.
