India’s small‑cap space is buzzing today as two under‑the‑radar firms, backed by famed investors often dubbed India’s Warren Buffetts, have completely cleared their debt. For savvy investors, that’s a rare win flagging efficiency, smarter balance sheets, and disciplined growth.

Aeroflex Industries: Lean, Green, and Debt-Free

Aeroflex Industries Ltd, incorporated in 1993, makes stainless steel metallic flexible flow solutions. With a market cap of about ₹2,383 crore and over 2,700 SKUs, it’s a consistent performer.

• Its 5‑year ROCE stands at 27%, and current ROCE at 22%, well above the industry median of around 14%.
• Debt levels have shrunk drastically, from ₹64 crore five years ago to just ₹0.58 crore (₹58 lakh) now.
• Revenue climbed from ₹144 crore in FY20 to ₹376 crore in FY25; EBITDA surged from ₹22 crore to ₹80 crore in the same period, and net profits jumped from ₹5 crore to ₹53 crore.

With such financial resilience, Aeroflex allows itself to redirect resources to growth, R&D, and emerging opportunities like data-center cooling and Hyd‑Air solutions.

Garuda Construction: Building Profits on a Debt-Free Base

Garuda Construction and Engineering Ltd was founded in 2010. The company focuses on civil construction for residential, commercial, industrial, and infrastructure projects. Its market capitalization is about ₹1,586 crore.

• With ROCE as high as 30% currently and 52% over five years, against an industry average of 17%, Garuda ranks among the most capital-efficient names.
• Debt has fallen from ₹31 crore five years back to only ₹0.10 crore (₹10 lakh) now.

That near-zero debt profile not only trims interest costs, it gives the company breathing room to scale, bid on bigger contracts, and retain strategic flexibility.

Why This Matters for Investors

Interest costs can drain profits and distract from strategic growth. These two companies, Aeroflex and Garuda, prove that with smart capital management, small caps can outperform on fundamentals and investor confidence alike. Their backing by heavyweight investors like Ashish Kacholia (holdings in Aeroflex) and Utpal Sheth (stakes in Garuda) only adds validation.

In a broader market where many small-caps face volatility and investor skepticism, these zero‑debt, high‑ROCE gems offer compelling narratives, for income, efficiency, and long-term value.

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