INSUBCONTINENT EXCLUSIVE:
Companies with low or zero debt stand a better chance at surviving than those with high debt.Debt plays a significant role in the present
performance and future growth of any company.It's important to know the extent of leverage in a company
This is especially true in these challenging times when many businesses are struggling.Companies with low or zero debt stand a better chance
at surviving than those with high debt.However, if managed well, debt could help companies meet some of its expenditure
today's article, we list out the top 5 fundamentally strong companies with zero debt on their books
specialised electronic products for military as well as non-military use.Its product portfolio can be broadly classified into defence -
the art manufacturing facilities to cater to the requirements of its clients.On the R-D front, BEL has 4 R-D centres
It spends an average of 7% of its annual sales on R-D to equip the armed forces with advanced equipment.The company has been exploring other
avenues to diversify its revenue sources
It has entered into a joint venture with General Electric Medical Systems to manufacture medical electronic systems.Moreover, the company is
going to support India's burgeoning electric vehicle (EV) market
This just shows that BEL has managed to grow at a steady pace without taking any debt.#2 Avenue Supermarts (DMart)Avenue Supermarts is a
starting off with just one store in Mumbai
in the favour of DMart is its focus on providing deep discounts to its customers thereby creating value for them.DMart has a track record of
offline retail chain, DMart is required to add more stores if it needs to grow
substantial but manageable debt between 2015 to 2019
It reduced it to nil in the financial year 2021.#3 Relaxo FootwearsRelaxo Footwears is India's largest manufacturer of footwear products in
carry some debt on their books
cropscience is the biggest business driver
The company offers products and services such as genetically engineered seeds, and digital farming solutions aimed at empowering farmers
The company has established 3 R-D centres In India.In the financial year 2019-20, the company had a moderate debt of Rs 15 m
is an extremely well-managed company
be the biggest competitive advantage for the company
multinational Saint Cobain group
Grinding wheels are used in industries to smooth out several types of surfaces
Grindwell Norton is a global leader in geotextiles
Geotextiles are permeable fabrics made up of polyester
It's sales and profit figures have grown at a CAGR of 7% and 14.5% respectively over the last five years.On top of this, the company has
been funding its expenses purely through its earnings which implies the company is debt free
It has remained debt free for the past four years.Snapshot of debt-free stocks in India from Equitymaster's stock screenerThough we have
in identifying and eliminating stocks that are not meeting your requirements and give emphasis on those stocks that are well inside the
such decisions hinder the company's growth? Of course, it willYou see, taking on debt is no crime
is prudential management of debt
worthy investment.Any company having debt to equity ratio of less than 1 should be preferred over others
been edited by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)
