4 Smallcap Low Debt Stocks to Watch for Future Multibagger Potential: Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Tata Elxsi Rs 3,700. Kajaria Ceramics Rs 1,136.60. CAMS Rs 650. Travel Food Services Rs 1,157.80. Market caps from Rs 15,398 crore to Rs 23,043 crore. Data as of 23 Oct 2026.
Quick Answer
Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services are the 4 picks in this low debt stocks watchlist, with market caps between Rs 15,398 crore and Rs 23,043 crore. Tata Elxsi stands out for the fastest profit growth, 33.09% a year since FY11, while Kajaria Ceramics offers the strongest latest-quarter profit growth at 55.04%. PE ratios run from 31.67 to 34.44, 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. Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services meet that test, with market caps from Rs 15,398 crore to Rs 23,043 crore and Tata Elxsi offering the fastest profit growth, 33.09% a year since FY11. Each of these companies has a market capitalisation below Rs 30,000 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 below Rs 30,000 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 below Rs 30,000 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 smaller companies that run on mostly their own money, which keeps interest costs low and protects profit in slow years. The four here cover design and technology services, ceramic tiles, mutual fund services and travel food services.
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. Travel Food Services has the lowest PE of the group at 31.67, while CAMS posts the highest return on equity at 36.04%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Tata Elxsi | 3,700 | 23,043 | 34.39 | 20.69 | 24.73% | 0.05 | 2,996.00 to 5,950.00 |
| Kajaria Ceramics | 1,136.60 | 18,864 | 34.44 | 30.35 | 15.83% | 0.07 | 869.60 to 1,293.80 |
| Computer Age Management Services | 650 | 16,532 | 33.66 | 42.45 | 36.04% | 0.05 | 611.40 to 844.90 |
| Travel Food Services | 1,157.80 | 15,398 | 31.67 | 59.28 | 30.57% | 0.17 | 1,035.30 to 1,470.90 |
Tata Elxsi: 33.09% Profit CAGR Since FY11
Tata Elxsi provides design and technology services to the automotive, media, communications and healthcare industries. It reported FY15 revenue of Rs 852.75 crore, up 8.31% year on year, and net profit of Rs 102.02 crore, up 41.18%. Net profit has compounded at 33.09% a year since FY11, while revenue has grown 19.39% a year. Operating margin was 21.35% in FY15. The debt-to-equity ratio is 0.05, which keeps interest costs low.
In the March 2015 quarter, revenue rose 8.97% to Rs 230.77 crore and net profit grew 36.52% to Rs 29.83 crore. The stock trades at a PE of 34.39 against an industry PE of 20.69, with a return on equity of 24.73%. The dividend yield is 2.03%.
Kajaria Ceramics: Debt-to-Equity of 0.07
Kajaria Ceramics is the largest tile maker in India by capacity, selling ceramic and vitrified tiles across the country. It reported FY26 revenue of Rs 4,883.22 crore, up 4.39% year on year, and net profit of Rs 490.06 crore, up 40.70%. Net profit has compounded at 6.37% a year since FY22, while revenue has grown 6.95% a year. Operating margin was 18.05% in FY26. The debt-to-equity ratio is 0.07, which keeps interest costs low.
The stock trades at a PE of 34.44 against an industry PE of 30.35, with a return on equity of 15.83%. In the June 2026 quarter, revenue rose 20.54% to Rs 1,345.22 crore and net profit grew 55.04% to Rs 171.03 crore.
CAMS: Return on Equity of 36.04%
CAMS is the registrar and transfer agent for a large share of the Indian mutual fund industry. It reported FY26 revenue of Rs 1,567.42 crore, up 6.26% year on year, and net profit of Rs 472.02 crore, up 1.58%. Net profit has compounded at 13.25% a year since FY22, while revenue has grown 14.03% a year. Operating margin was 48.43% in FY26. The debt-to-equity ratio is 0.05, which keeps interest costs low.
In the June 2026 quarter, revenue rose 12.06% to Rs 411.61 crore and net profit grew 17.64% to Rs 127.10 crore. Domestic institutions raised their holding from 17.31% in June 2025 to 23.54% in June 2026. The stock trades at a PE of 33.66 against an industry PE of 42.45, below the sector average, with a return on equity of 36.04%. The dividend yield is 1.87%.
Travel Food Services: Return on Equity of 30.57%
Travel Food Services runs food and beverage outlets and lounges at airports and other travel locations. It reported FY26 revenue of Rs 1,742.64 crore and net profit of Rs 452.32 crore, up 19.14%. Revenue has compounded at 43.82% a year since FY22. Operating margin was 49.14% in FY26. The debt-to-equity ratio is 0.17.
The stock trades at a PE of 31.67 against an industry PE of 59.28, below the sector average, with a return on equity of 30.57%. In the June 2026 quarter, revenue rose 25.92% to Rs 498.38 crore and net profit grew 35.58% to Rs 128.75 crore. Domestic institutions raised their holding from 5.09% in July 2025 to 10.02% in June 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) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Tata Elxsi | 852.75 | 102.02 | 19.39% | 8.97% | 41.18% | 20.27% |
| Kajaria Ceramics | 4,883.22 | 490.06 | 6.95% | 20.54% | 40.70% | 20.98% |
| CAMS | 1,567.42 | 472.02 | 14.03% | 12.06% | 1.58% | 50.40% |
| Travel Food Services | 1,742.64 | 452.32 | 43.82% | 25.92% | 19.14% | 48.57% |
Check the Univest Screener for live data on these low debt stocks
Institutional Holding in Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services
Institutional holding shows who is backing these low debt stocks alongside the promoter. The table uses the latest reported quarter for each. CAMS has the deepest institutional backing, with FII and DII together holding 68.42% as of June 2026. Domestic institutions increased their holding over the past year in CAMS (from 17.31% to 23.54%) and Travel Food Services (from 5.09% to 10.02%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Tata Elxsi | 43.89% | 8.00% | 9.98% | 38.13% | September 2026 |
| Kajaria Ceramics | 47.69% | 11.58% | 26.25% | 14.48% | June 2026 |
| CAMS | Nil | 44.88% | 23.54% | 31.57% | June 2026 |
| Travel Food Services | 86.19% | 1.64% | 10.02% | 2.14% | June 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: Tata Elxsi trades at a PE of 34.39 against an industry PE of 20.69, 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 (20.69 to 59.28) 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, Tata Elxsi stands out for the fastest profit growth, 33.09% a year since FY11, Kajaria Ceramics for the strongest latest-quarter profit growth at 55.04%, CAMS for the highest return on equity at 36.04% and Travel Food Services for the lowest PE of the group at 31.67. 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. Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services are the 4 names this list highlights, with market caps of Rs 23,043 crore, Rs 18,864 crore, Rs 16,532 crore and Rs 15,398 crore respectively. Tata Elxsi is notable for the fastest profit growth, 33.09% a year since FY11. Kajaria Ceramics stands out for the strongest latest-quarter profit growth at 55.04%. CAMS offers the highest return on equity at 36.04%. Travel Food Services brings the lowest PE of the group at 31.67. These are watchlist names for low debt stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is CAMS a good stock for long-term investors?
Ans. CAMS has a return on equity of 36.04%, a PE of 33.66 against an industry PE of 42.45 and a market cap of Rs 16,532 crore. Net profit has compounded at 13.25% a year since FY22, and FY26 revenue rose 6.26% while June 2026 quarter net profit grew 17.64%. 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 Tata Elxsi become a multibagger from here?
Ans. Tata Elxsi has a market cap of Rs 23,043 crore. A multibagger outcome in low debt stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 33.09% a year since FY11, and FY15 revenue rose 8.31%. At a PE of 34.39 against an industry PE of 20.69, valuation should be checked against that growth before investing.
What is the market cap of Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services?
Ans. As of 23 October 2026, Tata Elxsi has a market cap of Rs 23,043 crore, Kajaria Ceramics has a market cap of Rs 18,864 crore, CAMS has a market cap of Rs 16,532 crore and Travel Food Services has a market cap of Rs 15,398 crore. All of them qualify as smallcaps. 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. Tata Elxsi trades at a PE of 34.39 against an industry PE of 20.69, so earnings growth needs to hold up.
Why is Tata Elxsi trading at a PE of 34.39?
Ans. Tata Elxsi’s PE of 34.39 compares with an industry PE of 20.69. The market is paying a premium for a return on equity of 24.73%, profit growth of 33.09% a year since FY11 and latest-quarter profit growth of 36.52%, 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 Tata Elxsi, Kajaria Ceramics, CAMS and Travel Food Services?
Ans. As of the latest reported quarter, FII and DII together hold 17.98% of Tata Elxsi (8.00% and 9.98%), 37.83% of Kajaria Ceramics (11.58% and 26.25%), 68.42% of CAMS (44.88% and 23.54%) and 11.66% of Travel Food Services (1.64% and 10.02%). Rising institutional holding is a useful signal in low debt stocks, though it should be read with earnings trends rather than on its own.
