While mainstream coverage in television, print and digital media largely focuses on heavyweight bluechip companies backed by massive capital expenditure and large workforces, several smaller listed firms have quietly delivered strong financial performance away from the spotlight. Amid volatile markets and rising scrutiny of balance-sheet strength, capital-efficient, low-debt companies have increasingly drawn attention for their ability to generate returns without heavy reliance on borrowing. Two such firms—Jyoti Resins and Adhesives Ltd and Garuda Construction and Engineering Ltd—stand out for their strong return ratios and near debt-free balance sheets.
Jyoti Resins and Adhesives: Strong Returns in a Competitive FMCG Niche
Incorporated in 1993, Jyoti Resins and Adhesives Ltd manufactures synthetic resin adhesives, primarily wood adhesives sold under the Euro 7000 brand. The company operates in a segment dominated by large players but has steadily expanded its footprint in the retail market.
With a market capitalisation of around ₹1,336 crore, Euro 7000 has emerged as the second-largest white glue brand in India’s retail segment, competing directly with established incumbents.
From a financial standpoint, the company has demonstrated consistently high capital efficiency. Its current return on capital employed (ROCE) stands at around 50%, significantly above the industry median of approximately 15%. Over the past five years, average ROCE has remained elevated at about 55%, indicating sustained operational efficiency.
Jyoti Resins is also debt-free, allowing it to deploy operating cash flows without interest obligations.
Financial Performance
- Revenue growth: ₹74 crore in FY20 to ₹284 crore in FY25 (CAGR ~31%)
- EBITDA: ₹12 crore in FY20 to ₹89 crore in FY25
- Net profit: ₹8 crore in FY20 to ₹74 crore in FY25
- H1FY26: Revenue ₹149 crore; net profit ₹34 crore
The stock has delivered strong long-term price appreciation over the past five years, although it currently trades below its earlier peak. Valuation metrics indicate the stock is priced below its long-term average and below industry medians.
Garuda Construction: Margin Discipline in Civil Engineering
Established in 2010, Garuda Construction and Engineering Ltd provides end-to-end civil construction services across residential, commercial, infrastructure and industrial projects.
With a market capitalisation of approximately ₹1,832 crore, the company operates in a sector typically characterised by thin margins and high working capital requirements. However, Garuda Construction has focused on niche, higher-margin projects, which has reflected in its return ratios.
The company reports a current ROCE of about 30%, while its five-year average ROCE stands significantly higher at around 52%, compared with an industry median near 18%. Like Jyoti Resins, Garuda Construction also operates with minimal debt exposure.
Financial Performance
- Revenue: ₹124 crore in FY20 to ₹225 crore in FY25
- EBITDA: ₹4 crore in FY20 to ₹66 crore in FY25
- Net profit: ₹1 crore in FY20 to ₹50 crore in FY25
- H1FY26: Revenue ₹241 crore; net profit ₹55 crore
According to its October 2025 investor presentation, the company’s order book expanded to ₹3,461 crore, more than doubling from the level at the time of its IPO, indicating strong execution visibility.
Focus on Capital Efficiency and Balance Sheet Strength
Both companies highlight a broader trend among select mid-sized firms: prioritising return ratios, disciplined capital allocation and balance-sheet strength over aggressive leverage-led expansion.
Their financial profiles show:
- Low or negligible debt
- Strong operating cash flows
- Sustained profitability growth
- Higher-than-industry capital efficiency
Such characteristics have gained prominence as investors increasingly focus on quality of earnings and balance-sheet resilience, especially during periods of global uncertainty.
Disclaimer
This article is for informational and educational purposes only. It does not constitute investment advice, stock recommendations, or a solicitation to buy or sell any securities. Financial data has been compiled from publicly available sources. Readers should rely on independent research and professional advice for investment decisions.
