Two Indian Stocks With Explosive Profit Growth and Zero Debt: Can They Keep It Up?

As the first quarter of the fiscal year (Q1 FY25) ends, investors are actively searching for companies demonstrating robust financial health and growth potential. We’ve identified two Indian stocks that meet exceptionally stringent criteria: zero debt, Return on Capital Employed (ROCE) over 40%, and profit growth exceeding 100% CAGR over the last five years. Only two companies made the cut, highlighting their outstanding performance.

These companies, Shilchar Technologies and Amic Forging, have not only eliminated debt but also achieved impressive capital efficiency and delivered compounded profit growth of up to 151% in recent years.

Shilchar Technologies Ltd: Capital Efficiency and Rapid Growth

Incorporated in 1986, Shilchar Technologies is a key manufacturer of Power & Distribution, and Electronics & Telecom transformers in India. With a market capitalization of Rs 6,086 crore, the company recently expanded into Ferrite transformers.

Financial Performance Highlights

Shilchar Technologies demonstrates remarkable capital efficiency. Its 5-year average ROCE is 47%, and the current ROCE stands at an impressive 71%. This significantly outperforms the current industry median of just 19%. In practical terms, for every Rs 100 of capital employed, Shilchar currently generates Rs 71 in profit, compared to the industry average of Rs 19.

The company has experienced significant growth across key metrics over the past five years:

• Sales: Grew from Rs 71 crore in FY20 to Rs 623 crore in FY25, a Compound Annual Growth Rate (CAGR) of 54%.
• EBITDA: Increased from Rs 3 crore in FY20 to Rs 185 crore in FY25, showing a 128% CAGR.
• Net Profits: Leapt from Rs 2 crore in FY20 to Rs 147 crore in FY25, achieving a substantial 151% CAGR.

Stock Performance and Valuation

The robust financial performance has translated into exceptional stock market gains. Shilchar Technologies’ share price surged from around Rs 37 in July 2020 to Rs 5,320 as of July 2, 2025, representing a gain of approximately 14,300%. An investment of Rs 1 lakh five years ago would be worth about Rs 1.43 crore today.

Chart showing Shilchar Technologies stock price performance and significant growth

Despite this significant jump, the stock is trading at a slight discount (around 13%) from its all-time high. In terms of valuation, the current Price-to-Earnings (PE) ratio is 41x, below the industry median of 46x. However, the 10-year median PE for Shilchar is a more modest 16x, compared to the industry median of 26x for the same period.

Debt Status and Outlook

Shilchar Technologies has successfully eliminated debt over the past five years, achieving a debt-free status. The company surpassed its FY25 revenue target of Rs 550 crore by recording Rs 623 crore in sales and aims for a turnover of Rs 750–800 crore in FY26. FY25 was reported as an exceptional year with record-high quarterly and annual top-line and bottom-line figures. The board has also recommended a final dividend of Rs 12.5 per share and a 1:2 bonus issue, subject to shareholder approval.

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Amic Forging Ltd: Forging Growth and Expanding Capacity

Established in 2007, Amic Forging specializes in the manufacturing of forged components. With a market cap of Rs 1,886 crore, the company produces steel forgings and precision machined parts for various industries.

Financial Performance Analysis

Similar to Shilchar, Amic Forging exhibits strong capital efficiency. Its current ROCE is 48%, and the 10-year average is a solid 35%. This compares favorably to the industry median ROCE of 19%. For every Rs 100 of capital employed, Amic Forging currently generates Rs 48 in profit.

The company has also recorded rapid growth over the last five years:

• Sales: Increased from Rs 13 crore in FY20 to Rs 121 crore in FY25, resulting in a 55% CAGR.
• EBITDA: Grew from Rs 1 crore in FY20 to Rs 28 crore in FY25, a CAGR of 95%.
• Net Profits: Starting from no profit (or loss) in FY20, net profits reached Rs 36 crore in FY25, achieving a 142% CAGR.

Stock Performance and Valuation

Amic Forging listed in December 2023 at around Rs 277 per share. As of July 2, 2025, the price reached Rs 1,671, a jump of 503%. An investment of Rs 100,000 at the time of listing would be worth just over Rs 600,000 today.

The stock is currently trading at a PE ratio of 53x, higher than the industry median of 33x. The 10-year median PE for Amic Forging is 49x, compared to the industry median of 30x.

Debt Status and Expansion

Amic Forging has significantly reduced its debt and is currently nearly debt-free. While the company has shown strong profit growth, it has not distributed dividends. A significant development in June 2025 was the announcement of the acquisition and renovation of a 129,600 sq ft factory unit in Eastern India. This facility is expected to start commercial production by December 15, 2025, with a daily capacity of 150 tons. This expansion will substantially boost the company’s forging capacity from 18,000 MTPA to 30,000 MTPA and machining capacity from 700 MTPA to 24,000 MTPA, signaling strong future growth intentions.

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The Big Question: Can This Growth Be Sustained?

Shilchar Technologies and Amic Forging have undeniably demonstrated exceptional financial performance and strong operational execution, reflected in their high ROCE, rapid profit growth, debt reduction, and significant stock price appreciation.

The critical question for investors now is whether these companies can maintain this high growth trajectory. Sustaining triple-digit profit CAGRs and achieving such high capital efficiency year after year is a significant challenge.

However, their performance over the past five years, combined with strategic moves like capacity expansion (in the case of Amic Forging) and consistent delivery on targets (Shilchar Technologies), suggests strong management and market positioning. While past performance is not indicative of future results, these stocks certainly warrant close monitoring from investors looking for companies with a proven track record of turning capital into substantial profits.

Disclaimer

Note: Data primarily sourced from Screener.in and Trendlyne.com.

This article provides data points and opinions for educational purposes only and is not investment advice. Consult a qualified financial advisor before making investment decisions.

Suhel Khan is a financial market observer with over a decade of experience, having previously led Sales & Marketing for an Equity Research firm. He focuses on analyzing the strategies of leading investors.

Disclosure: Neither the author nor his dependents hold stocks discussed in this article.

The website, its employees, and contributors may have positions in the securities discussed. Content reflects personal views. Investors must conduct their own research and consult advisors.