Debt Free Companies in India 2017

India experiences both high inflation and high interest rates. Immediate effect of both, on companies finance is negative.

High interest rates clearly affect companies operating costs & profit margins.

Companies which remain isolated from effects of high interest rates are debt free companies.

The companies which are more dependent on debt to manage their working capital, face the burnt of high interest rates.

Interest rates of debt is fluctuating. When interest rates goes up, it will eventually increase the expense of company. This will automatically translate into lower profits.

Zero debt companies in India are ones which are more self reliant. Such companies are best suited for long term investing.

Profitability of zero debt companies are generally more than high debt companies. Debt is a liability which has also a big cost attached to it. Debt gives immediate relief, but its also an expense for the future.

Hence companies which may be earning lesser profits, but carry zero debt, are more preferable by value investors.

In India we have several zero debt companies.

It will not be wrong for us to start identifying good companies using zero debt (or low debt) as one of our first screening criteria.

High interest rates negatively effects the profitability of high debt companies. In periods of soaring interest rates, low debt and debt free companies emerge as clear winners.

In India, interest rates remain very unpredictable. One never know when rising trend will start again. This mainly happens due to wavering inflation.

In India inflation can stabilize for few year. But even with minor changes on political front, inflation cuts deep again.

For investors it is important to keep a note of debt free companies in India. Keeping track of price valuation of zero debt (or low debt) companies is a very good idea. Timing purchase of such stocks is recommended.

I personally like companies carrying zero or very low debt.

Study of debt levels of companies certainly helps. How dependent is company on debt over long periods of time, speaks a lot about its fundamentals.

Only single year study will not be enough. Hence it is advisable to keep last 5 years financial reports of companies handy.

In this age of fast internet we can keep soft copies of financial statements. Internet enables access to information related to companies with click of a button.

http://www.getmoneyrich.com/product/stock-analysis-worksheet/

Notes on Debt Free Companies:

1) Debt free companies are profitable stocks.
2) High interest rates reduces profitability of debt companies.
3) Zero debt companies have strong business fundamentals.
4) Debt free companies stocks must be preferred for investing.
5) Keeping ready-list of debt free companies is a good idea.

Interest Expense & Net Profit

Even small increase in interest rates can create a big hole in companies profits.

A company, whose turnover is Rs.34,000 crore, and incurs Rs.1,300 crore of interest expense. It means, its interest expense is 3.8% of the total turnover of company.

Generally speaking, 3.8% expense load on any one item, can be considerd very high.

Even marginal increase in interest expense can effect profitability. To negate high interest costs, companies must avoid maintaining high debt levels

In case debt levels cannot be reduced, companies profits reduces. This is one compromise high debt companies makes all the time.

Debt free companies are completely free of such compromises.

Companies which are debt free generates their liquid cash comparatively easily. This cash is used to manage current liabilities.

When there is no debt (immediate interest expense), companies liquidity level remains good. This makes day-to-day cash flow management relatively simpler.

Debt Free Companies are Ideal

Debt free companies are low risk companies for investors. Not only investors but even bankers love such companies. When need comes and such companies need debt, banks can lend them debt at low interest rates.

For investors, debt free companies are investment heavens. Debt free companies are like ‘financially independent’ business.

Such companies have enough cash generating source of their own. They do not need market debt to run their business.

This situation may sound simple, but it take decades for companies to reach this stage. But more than time factor (age of company), zero or low debt levels speaks volumes about how good is the companies management.

Running a big business, without being dependent on debt is worth a thousand praises. It is not an easy milestone to achieve.

This level of self-reliance can be achieved only due to perseverant management.

It has also been observed that, generally debt free companies share higher dividends with its shareholders.

If company is focusing on long term growth, they may not distribute high dividends. But big, debt free companies share reasonably high dividends and also manage fast growth.

Zero Debt & Business Fundamentals

In order to understand this correlation, lets take an example. Look into NMDC’s balance sheet. In last 10 years NMDC had zero debt. During the same period, company was able to increase its reserves at staggering rate of 28% per annum.

Zero debt and fast increasing reserves is an excellent indicator of strong business fundamentals.

NMDC’s is good example of debt free company. Looking at companies Profit & loss accounts, NMDC’s ‘Total Income’ has increased at rate of 19% per annum. While NMDC’s ‘Total expense’ has increased at rate of only 15% per annum. This differential between income and expense enhances companies profit and profitability. NMDC’s profit and profitability both has improved in last 10 years.

Debt Free Companies in India

All debt free companies are Good?

Generally debt free companies are good bet for investment. But all debt free companies may not be good.

A scrutiny of business fundamentals is a must before one goes ahead and buy their stocks.

It will be good idea to check companies ‘Total Income growth (sales turnover)’. Though company is maintaining zero debt but; if it is not able to increase turnover, it will not be considered good.

To get more idea, compare sales turnover of company with its nearest competitors.

Concept says, it’s a good practice to keep debt levels as low as possible. But this should not be done at cost of ‘business growth’.

Companies which are compromising its growth are either complacent or does not have skillful & dynamic top managers.

A combination of high sales growth and low debt is ideal. Investors must keep track of such companies. Also, companies maintaining high profit margins automatically becomes most preferred by investors.

Debt Free Companies in India 2017

This time I am introducing a new concept of “Enterprise Value” to identify debt free companies.

To understand this lets take a small hypothetical example.

Suppose there are two companies ABC & XYZ. ABC has a debt of Rs.80 Crore and B has a debt of Rs.120 Crore. Which company looks better here? If we have to look only at debt levels, Company ABC looks less risky.

Now suppose, Networth of ABC is Rs.80 Crore and Net worth of XYZ is Rs.120 Crore. Means, the debt equity ratio (D/E) of ABC is 1 (80/80) and that of XYZ is also 1 (120/120).

So which company is better? Debt/Equity ratio being a very reliable debt burden indicator is not able to differentiate between ABC & XYZ. What to do?

There is a way out.

Suppose Company ABC and XYZ has a cash/cash equivalent reserves of Rs.75 Crore and Rs.132 Crore respectively.

Debt -(minus) Cash for Company ABC is = Rs.5 Crore (80-75).

Debt –(minus) Cash for Company XYZ is = Rs.-12 Crore (120-132).

A negative value for Company XYZ indicates that company is having enough cash to pay-off all its debt.

Hence, even if companies like XYZ is carrying high debt (Rs.120 Crore), it still as good as zero debt. This is because XYZ also has enough cash reserves (Rs.132 Crore) to negate its debt burden.

Such companies (like XYZ), whose Debt minus Cash value is negative, can be included in our list of debt free companies.

In stock metric terms, we will use the Enterprise Value and Market Cap to understand how big is the cash reserves of a company compared to its debt.

Enterprise Value minus Market Capitalisation = Debt – Cash

Example: In the below list of companies, you will note that Rajesh Exports & Interglobe Aviation having a debt/equity ratio of 0.94 and 0.7 respectively has been included. This is only because they have a high negative “Enterprise Value minus Market Cap” component.

[Note: If you want to know more about Enterprise value, check this link….]

(Updated on December’2017)

SL Company Sector Size of Company (M.Cap) Market Cap (Cr) Debt Equity Ratio Enterprise value Minus Market Cap (Negative is better)
1 Tata Consultancy Services Ltd. Technology - Computer Software Very Large 504,271.21 0.00 -45,496.00
2 Infosys Ltd. Technology - Computer Software Very Large 223,945.36 0.00 -32,595.00
3 Coal India Ltd. Energy - Coal & Lignite Very Large 171,448.64 0.12 -28,728.78
4 Hindustan Zinc Ltd. Metals - Other Non-Ferrous Metal Very Large 126,611.68 0.26 -24,255.00
5 Wipro Ltd. Technology - Computer Software Very Large 142,010.04 0.28 -20,232.80
6 ITC Ltd. FMCG - Tobacco Prod. Very Large 311,591.55 0.00 -13,254.07
7 Bharat Heavy Electricals Ltd. Engineering - Electrical Machinery Large 33,740.17 0.00 -10,337.66
8 HCL Technologies Ltd. Technology - Computer Software Very Large 118,039.72 0.02 -9,600.82
9 Rajesh Exports Ltd. Services - Trading Medium 22,618.39 0.94 -9,287.96
10 Bajaj Auto Ltd Automobile - Two & Three Wheelers Very Large 95,829.68 0.01 -6,231.54
11 Interglobe Aviation Ltd. Services - Air Transport Large 43,225.61 0.70 -5,749.78
12 Sun Pharmaceutical Inds. Ltd. Healthcare - Drugs & Pharma Very Large 129,550.71 0.27 -5,539.95
13 Hindustan Unilever Ltd. FMCG - Cosmetics & Toiletries Very Large 275,700.46 0.04 -5,365.00
14 NMDC Ltd. Metals - Minerals Large 40,434.52 0.00 -5,322.41
15 Max Financial Services Ltd. Financial - Misc. Fin.services Medium 14,742.33 0.00 -5,039.19
16 Hero Motocorp Ltd. Automobile - Two & Three Wheelers Very Large 72,739.29 0.03 -4,478.84
17 Ambuja Cements Ltd. Construction - Cement Large 52,143.04 0.00 -4,323.42
18 Tech Mahindra Ltd. Technology - Computer Software Large 47,785.69 0.09 -4,017.10
19 Bharat Electronics Ltd. Engineering - Electronic Equipts. Large 45,749.17 0.01 -3,763.60
20 Siemens Ltd. Engineering - Switching Equipment Large 42,577.74 0.00 -3,485.00
21 Bharti Infratel Ltd. Communication - Telecom.Services Very Large 70,867.74 0.02 -3,470.30
22 National Aluminium Co. Ltd. Metals - Aluminium Medium 15,879.01 0.01 -3,457.27
23 Glaxosmithkline Consumer Healthcare Ltd. FMCG - Dairy products Medium 25,621.92 0.00 -3,079.02
24 Oracle Financial Services Software Ltd. Technology - Computer Software Large 31,573.81 0.00 -3,031.69
25 Engineers India Ltd. Construction - Construction Medium 11,851.50 0.00 -2,739.05
26 Mphasis Ltd. Technology - Computer Software Medium 14,102.99 0.04 -2,624.38
27 Nestle India Ltd. FMCG - Dairy products Large 73,758.02 0.01 -2,121.89
28 Moil Ltd. Metals - Minerals Medium 6,571.49 0.00 -2,092.03
29 Havells India Ltd. Engineering - Switching Equipment Large 31,907.58 0.06 -2,021.23
30 Bosch Ltd. Automobile - Auto Ancillaries Large 62,039.51 0.00 -1,985.80
31 SJVN Ltd. Energy - Electricity Generation Medium 13,837.02 0.21 -1,903.33
32 Zee Entertainment Enterprises Ltd. Services - Media & Entertainment Large 54,664.22 0.29 -1,890.50
33 ACC Ltd. Construction - Cement Large 31,294.75 0.00 -1,877.27
34 Cochin Shipyard Ltd. Services - Shipping Medium 7,743.59 0.06 -1,868.29
35 Bajaj Holdings & Investment Ltd. Financial - Invest.Services Large 31,740.35 0.00 -1,859.11
36 KIOCL Ltd Metals - Minerals Medium 25,938.92 0.00 -1,845.00
37 Exide Industries Ltd. Engineering - Storage Batteries Medium 17,454.75 0.04 -1,723.99
38 Maruti Suzuki India Ltd. Automobile - Cars & Multi Utility Vehicles Very Large 259,858.33 0.01 -1,718.70
39 Divi's Laboratories Ltd. Healthcare - Drugs & Pharma Medium 27,692.35 0.01 -1,673.68
40 NBCC India Ltd. Construction - Real Estate Medium 23,625.00 0.00 -1,640.04
41 Asian Paints Ltd. Chemicals - Paints & Varnishes Very Large 110,091.93 0.07 -1,592.21
42 Pfizer Ltd. Healthcare - Drugs & Pharma Medium 8,790.43 0.00 -1,520.59
43 Pidilite Industries Ltd. Chemicals - Thermoplastics Large 43,245.30 0.03 -1,392.24
44 Kothari Products Ltd. FMCG - Tobacco Prod. Small 582.10 0.30 -1,359.51
45 Sun TV Network Ltd. Services - Media & Entertainment Large 34,281.42 0.00 -1,333.87
46 Larsen & Toubro Infotech Ltd. Technology - Computer Software Medium 17,341.89 0.00 -1,320.10
47 Titan Company Ltd. Cons Durable - Gems & Jewellery Large 72,714.13 0.00 -1,195.75
48 Multi Commodity Exchange India Financial - Misc. Fin.services Medium 4,907.15 0.00 -1,151.62
49 Abbott India Ltd. Healthcare - Drugs & Pharma Medium 11,191.26 0.00 -1,090.92
50 AIA Engineering Ltd. Metals - Castings & Forgings Medium 13,890.56 0.05 -1,066.22
51 Whirlpool Of India Ltd. Cons Durable - ACs & Refrigerators Medium 19,680.36 0.00 -1,058.95
52 Indraprastha Gas Ltd. Energy - Crude Oil & Natural Gas Medium 22,869.03 0.00 -1,026.46
53 Kirloskar Oil Engines Ltd. Automobile - Auto Ancillaries Medium 5,028.95 0.01 -993.08
54 Kansai Nerolac Paints Ltd. Chemicals - Paints & Varnishes Large 26,919.04 0.01 -989.72
55 Glaxosmithkline Pharmaceuticals Ltd. Healthcare - Drugs & Pharma Medium 20,995.76 0.00 -931.14
56 Lakshmi Machine Works Ltd. Engineering - Textile Machinery Medium 6,355.51 0.00 -922.95
57 Welspun Projects Ltd. Construction - Construction Small 2,252.09 0.12 -905.99
58 Bayer CropScience Ltd. Healthcare - Drugs & Pharma Medium 13,842.27 0.00 -888.70
59 Thermax Ltd. Engineering - Industrial Machinery Medium 13,190.60 0.05 -884.33
60 Petronet LNG Ltd. Energy - Crude Oil & Natural Gas Large 37,650.00 0.27 -880.07
61 Eicher Motors Ltd. Automobile - Commercial Vehicles Very Large 81,591.18 0.01 -864.26
62 GE Power India Ltd. Construction - Construction Small 4,465.25 0.00 -850.20
63 TI Financial Holdings Ltd. Financial - Misc. Fin.services Medium 10,564.16 0.00 -833.58
64 Castrol India Ltd. Energy - Lubricants, etc. Medium 19,784.92 0.00 -821.88
65 Novartis India Ltd. Healthcare - Drugs & Pharma Small 1,815.36 0.00 -815.72
66 Orissa Minerals Development Company Ltd. Metals - Minerals Small 1,246.41 0.00 -799.12
67 Finolex Cables Ltd. Engineering - Wires & cables Medium 10,302.76 0.00 -794.36
68 Cyient Limited Technology - Computer Software Medium 6,487.38 0.10 -759.20
69 MindTree Ltd. Technology - Computer Software Medium 8,833.11 0.04 -738.10
70 3M India Ltd. Services - Trading Medium 17,426.16 0.01 -734.37
71 NIIT Technologies Ltd. Technology - Computer Software Small 3,925.54 0.01 -711.90
72 SKF India Ltd. Engineering - Ball Bearings Medium 8,588.33 0.02 -706.26
73 Ingersoll Rand India Ltd. Engineering - Pumps & Compressors Small 2,485.82 0.00 -673.02
74 Kaveri Seed Company Ltd. FMCG - Other Agri.prod. Small 3,599.71 0.00 -670.80
75 Honeywell Automation India Ltd. Engineering - Electronic Equipts. Medium 15,147.96 0.00 -661.22
76 Schaeffler India Ltd. Engineering - Ball Bearings Medium 8,640.90 0.00 -640.55
77 Mahanagar Gas Ltd. Energy - Crude Oil & Natural Gas Medium 10,956.43 0.00 -612.07
78 eClerx Services Ltd Services - Misc.Other Services Small 5,489.72 0.00 -605.99
79 Crisil Ltd. Financial - Credit Ratings & Information Medium 13,393.05 0.00 -601.41
80 Persistent Systems Ltd. Technology - Computer Software Medium 5,222.80 0.00 -596.23
81 ABB Ltd. Engineering - Switching Equipment Large 29,551.68 0.18 -589.20
82 Tata Sponge Iron Ltd. Metals - Sponge Iron Small 1,473.40 0.00 -569.31
83 Wabco India Ltd. Automobile - Auto Ancillaries Medium 13,684.83 0.00 -565.04
84 Sanofi India Ltd. Healthcare - Drugs & Pharma Medium 10,162.72 0.00 -558.50
85 Cummins India Ltd. Engineering - Electrical Machinery Medium 24,034.63 0.07 -540.40
86 Olympic Oil Inds. Ltd. FMCG - Vegetable oils Very Small 34.19 0.00 -535.08
87 Balmer Lawrie & Co. Ltd. Diversified - Diversified Small 3,184.66 0.00 -529.83
88 Polaris Consulting & Services Ltd. Technology - Computer Software Small 3,753.69 0.00 -525.27
89 Bata India Ltd. FMCG - Footwear Medium 9,440.99 0.00 -522.04
90 Marico Ltd. FMCG - Vegetable oils Large 39,458.88 0.10 -521.71
91 Info Edge (India) Ltd. Services - E-Commerce Medium 15,690.17 0.00 -518.47
92 ISGEC Heavy Engineering Ltd. Engineering - Industrial Machinery Medium 5,116.48 0.28 -474.59
93 FDC Ltd. Healthcare - Drugs & Pharma Small 3,786.07 0.00 -464.17
94 OCL India Ltd. Construction - Cement Medium 8,737.60 0.49 -461.02
95 Vakrangee Ltd. Technology - Computer Software Large 37,921.03 0.07 -459.74
96 Goodyear India Ltd. Automobile - Tyres & Tubes Small 1,981.99 0.00 -453.43
97 Zydus Wellness Ltd. FMCG - Food Processing Small 3,555.56 0.04 -445.17
98 Hexaware Technologies Ltd. Technology - Computer Software Medium 9,980.03 0.00 -431.49
99 PC Jeweller Ltd. Cons Durable - Gems & Jewellery Medium 15,608.58 0.23 -428.59
100 Container Corpn. Of India Ltd. Services - Transport Support Services Large 31,866.09 0.01 -414.81
101 Geojit Financial Services Ltd. Financial - Invest.Services Small 2,816.20 0.01 -408.89
102 Avenue Supermarts Ltd. Services - Retailing Large 69,691.51 0.39 -391.13
103 Quick Heal Technologies Ltd. Technology - Computer Software Small 1,585.56 0.00 -384.45
104 Credit Analysis & Research Ltd Financial - Credit Ratings & Information Small 4,044.73 0.00 -368.75
105 Voltas Ltd. Cons Durable - ACs & Refrigerators Medium 21,067.43 0.05 -360.02
106 ICRA Ltd. Financial - Credit Ratings & Information Small 3,921.70 0.00 -358.83
107 Monsanto India Ltd. Chemicals - Pesticides Small 4,283.32 0.00 -358.15
108 Graphite India Ltd. Engineering - Welding machinery Medium 11,658.06 0.14 -357.74
109 Gujarat Pipavav Port Ltd Services - Shipping Medium 6,973.62 0.00 -352.24
110 Avanti Feeds Ltd. FMCG - Marine Foods Medium 11,809.32 0.03 -351.32
111 Zensar Technologies Ltd. Technology - Computer Hardware Small 3,837.24 0.09 -344.70
112 Dr. Lal Pathlabs Ltd. Healthcare - Health Services Medium 7,415.36 0.00 -342.88
113 Bajaj Corp Ltd. FMCG - Cosmetics & Toiletries Medium 7,176.61 0.03 -335.97
114 Vardhman Holdings Ltd. Textiles - Cotton & Blended Yarn Small 1,187.40 0.00 -334.42
115 MRF Ltd. Automobile - Tyres & Tubes Large 29,105.40 0.27 -332.48
116 Sonata Software Ltd. Technology - Computer Software Small 2,543.80 0.09 -311.36
117 Merck Ltd. Healthcare - Drugs & Pharma Small 1,863.11 0.00 -307.05
118 OnMobile Global Ltd. Technology - Computer Software Small 600.54 0.00 -306.13
119 Akzo Nobel India Ltd. Chemicals - Paints & Varnishes Medium 8,339.13 0.00 -301.80
120 63 Moons Technologies Ltd. Technology - Computer Software Small 621.83 0.16 -296.17
121 Colgate-Palmolive (India) Ltd. FMCG - Cosmetics & Toiletries Large 28,204.91 0.00 -294.30
122 Swelect Energy Systems Ltd. Engineering - Electronic Equipts. Small 476.24 0.17 -293.51
123 Nucleus Software Exports Ltd. Technology - Computer Software Small 1,617.57 0.00 -293.40
124 Fortune Financial Services (India) Ltd. Financial - Hire Purchase Small 1,405.70 0.80 -287.00
125 SmartLink Network Systems Ltd. Technology - Computer Hardware Very Small 236.78 0.00 -271.72
126 India Tourism Devp. Corpn. Ltd. Services - Tourism Small 4,386.68 0.01 -264.24
127 Syngene International Ltd. Healthcare - Drugs & Pharma Medium 11,066.00 0.58 -261.30
128 Eris Lifesciences Ltd Healthcare - Drugs & Pharma Medium 10,928.50 0.00 -260.26
129 Tata Elxsi Ltd. Technology - Computer Software Medium 5,872.05 0.00 -251.53
130 Manpasand Beverages Ltd. FMCG - Food Processing Small 4,535.57 0.00 -240.83
131 Suven Life Sciences Ltd. Healthcare - Drugs & Pharma Small 2,496.65 0.11 -239.28
132 Precision Camshafts Ltd. Engineering - Industrial Machinery Small 1,143.78 0.20 -235.30
133 Grindwell Norton Ltd. Metals - Abrasives Medium 5,693.78 0.01 -234.76
134 Ajanta Pharma Ltd. Healthcare - Drugs & Pharma Medium 12,054.91 0.00 -230.79
135 TV Today Network Ltd. Services - Media & Entertainment Small 2,367.35 0.06 -228.29
136 Amara Raja Batteries Ltd. Engineering - Storage Batteries Medium 13,648.77 0.03 -226.23
137 MPS Ltd. FMCG - Books & Newspapers Small 1,103.98 0.00 -222.70
138 ICICI Prudential Life Insurance Company Ltd. Financial - Insurance Large 53,844.37 0.00 -213.73
139 Symphony Ltd. Cons Durable - ACs & Refrigerators Medium 11,382.70 0.04 -213.46
140 IL&FS Investment Managers Ltd. Financial - Invest.Services Small 896.56 0.00 -205.03
141 Praj Industries Ltd. Engineering - Industrial Machinery Small 2,034.17 0.01 -203.51
142 Kirloskar Pneumatic Co. Ltd. Engineering - Pumps & Compressors Small 1,128.63 0.00 -201.37
143 Vesuvius India Ltd. Construction - Refractories Small 2,400.01 0.00 -198.89
144 KSB Pumps Ltd. Engineering - Pumps & Compressors Small 3,018.88 0.01 -197.00
145 Claris Lifesciences Ltd. Healthcare - Drugs & Pharma Small 1,888.04 0.02 -196.78
146 Hindustan Oil Exploration Co. Ltd. Energy - Crude Oil & Natural Gas Small 1,635.73 0.00 -194.58
147 Rallis India Ltd. Chemicals - Pesticides Small 4,759.63 0.04 -191.43
148 VST Tillers Tractors Ltd. Engineering - Other Machinery Small 1,818.02 0.00 -190.16
149 VST Industries Ltd. FMCG - Tobacco Prod. Small 5,053.60 0.00 -189.94
150 JB Chemicals & Pharmaceuticals Ltd. Healthcare - Drugs & Pharma Small 2,421.02 0.04 -189.49
151 Techno Electric & Engg. Co. Ltd. Construction - Construction Small 4,560.26 0.27 -187.58
152 Esab India Ltd. Engineering - Welding machinery Small 1,276.77 0.00 -185.29
153 MMTC Ltd. Services - Trading Medium 7,490.00 0.37 -183.33
154 Balaji Telefilms Ltd. Services - Media & Entertainment Small 1,710.62 0.00 -172.63
155 Gujarat State Petronet Ltd. Energy - Crude Oil & Natural Gas Medium 11,865.35 0.14 -172.11
156 Sandesh Ltd. FMCG - Books & Newspapers Small 718.26 0.00 -172.08
157 Britannia Industries Ltd. FMCG - Bakery & Milling Prod. Large 57,421.29 0.05 -171.05
158 Infibeam Incorporation Ltd. Services - E-Commerce Medium 9,216.46 0.18 -170.48
159 Polyplex Corporation Ltd. Chemicals - Plastic Films Small 1,672.79 0.34 -170.30
160 Manaksia Ltd. FMCG - Misc. Manuf.Articles Small 540.00 0.25 -170.09
161 TD Power Systems Ltd. Engineering - Electronic Equipts. Small 627.36 0.10 -169.28
162 TeamLease Services Ltd. Services - BPO Services Small 3,782.57 0.00 -168.49
163 Sharda Cropchem Ltd. Chemicals - Misc.Chem. Small 4,359.91 0.00 -168.40
164 CL Educate Ltd. Services - Education Small 456.42 0.17 -163.64
165 Munjal Showa Ltd. Automobile - Auto Ancillaries Small 1,067.87 0.00 -160.61
166 L&T Technology Services Ltd. Engineering - Other Projects Medium 10,375.20 0.07 -160.10
167 Master Trust Ltd. Financial - Hire Purchase Very Small 74.78 0.42 -153.44
168 Xchanging Solutions Ltd. Technology - Computer Software Small 663.41 0.00 -152.53
169 Escorts Ltd. Automobile - Auto Ancillaries Medium 8,788.76 0.16 -152.02
170 Greaves Cotton Ltd. Engineering - Industrial Machinery Small 2,957.34 0.00 -151.84
171 Sheela Foam Ltd. Textiles - Misc.Textiles Medium 8,770.17 0.13 -150.01
172 Infinite Computer Solutions (India) Ltd. Technology - Computer Software Small 846.90 0.16 -145.14
173 Music Broadcast Pvt Ltd. Services - Media & Entertainment Small 2,155.81 0.27 -144.86
174 Clariant Chemicals (India) Ltd. Chemicals - Dyes & Pigments Small 1,344.51 0.00 -144.31
175 GeeCee Ventures Ltd. Chemicals - Organic Chemicals Small 333.18 0.00 -143.79
176 Honda Siel Power Products Ltd. Engineering - Motors & generators Small 1,359.58 0.00 -142.15
177 Ashiana Housing Ltd. Construction - Real Estate Small 1,784.51 0.12 -137.92
178 Sandur Manganese & Iron Ores Ltd. Metals - Minerals Small 955.72 0.00 -137.20
179 Pilani Investment & Inds. Corpn. Ltd. Financial - Invest.Services Small 2,293.54 0.00 -135.14
180 La Opala RG Ltd. Construction - Glass & Glassware Small 3,542.01 0.00 -134.75
181 Dabur India Ltd. FMCG - Cosmetics & Toiletries Large 61,089.53 0.19 -134.02
182 Tanla Solutions Ltd. Communication - Telecom.Services Small 404.16 0.00 -133.30
183 RS Software (India) Ltd. Technology - Computer Software Very Small 203.35 0.00 -132.93
184 Sasken Technologies Ltd. Communication - Telecom.Services Small 1,091.97 0.00 -131.23
185 Thomas Cook (India) Ltd. Services - Tourism Medium 8,795.54 0.93 -129.67
186 Igarashi Motors India Ltd. Engineering - Motors & generators Small 2,715.73 0.06 -129.65
187 Jubilant FoodWorks Ltd. Services - Hotels & Restaurants Medium 11,714.96 0.00 -128.96
188 Mayur Uniquoters Ltd. Textiles - Misc.Textiles Small 2,095.93 0.03 -128.63
189 Oswal Agro Mills Ltd. Diversified - Diversified Very Small 202.69 0.00 -128.37
190 Elantas Beck India Ltd Chemicals - Misc.Chem. Small 1,506.34 0.00 -126.50
191 Kitex Garments Ltd. Textiles - Readymade Garments Small 2,003.31 0.02 -126.10
192 India Nippon Electricals Ltd. Automobile - Auto Ancillaries Small 1,224.84 0.00 -125.43
193 Banco Products (India) Ltd. Automobile - Auto Ancillaries Small 1,810.85 0.05 -121.19
194 R Systems International Ltd Technology - Computer Software Small 626.58 0.01 -120.65
195 Tide Water Oil Co. (India) Ltd. Energy - Lubricants, etc. Small 2,321.26 0.04 -120.54
196 India Motor Parts & Accessories Ltd. Automobile - Auto Ancillaries Small 822.22 0.05 -119.05
197 Procter & Gamble Hygiene & Health Care Ltd. FMCG - Cosmetics & Toiletries Large 30,513.09 0.00 -116.83
198 Gillette India Ltd. FMCG - Cosmetics & Toiletries Medium 20,887.12 0.00 -115.65
199 Astrazeneca Pharma India Ltd. Healthcare - Drugs & Pharma Small 2,838.38 0.00 -114.97
200 Voith Paper Fabrics India Ltd. Textiles - Misc.Textiles Very Small 337.94 0.00 -113.25
201 Thyrocare Technologies Ltd. Healthcare - Health Services Small 3,557.30 0.00 -113.07
202 Orient Refractories Limited Construction - Refractories Small 1,971.48 0.00 -110.84
203 Gulf Oil Lubricants India Ltd. Energy - Lubricants, etc. Small 5,024.91 0.51 -110.61
204 Selan Exploration Technology Ltd. Energy - Offshore Drilling Small 361.87 0.00 -110.23
205 Trigyn Technologies Ltd. Technology - Computer Software Very Small 364.80 0.00 -109.13
206 Just Dial Ltd. Services - E-Commerce Small 3,565.60 0.00 -107.37
207 Alembic Ltd. Healthcare - Drugs & Pharma Small 1,138.89 0.00 -107.08
208 Oswal Greentech Ltd Financial - Invest.Services Small 946.34 0.00 -102.62
209 NOCIL Ltd. Chemicals - Thermoplastics Small 2,896.40 0.03 -102.32
210 Timken India Ltd. Engineering - Industrial Machinery Medium 5,886.76 0.01 -100.50

[P.Note: Finance-Banking stocks necessarily has Enterprise value minus Market Capitalization in negative due to nature of their business and norms of RBI. Hence they have been intentionally excluded for our list.]


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51 Comments on "Debt Free Companies in India 2017"

  1. saravanan ramamoorthy | September 12, 2017 at 2:34 pm | Reply

    Your list of Debt free companies is bigger than other lists… Low priced stocks, Fastest growing companies, Best stocks to invest in 2017.
    Wonder why these are not so much popular. Are they all midcaps ? Why are they flat in volatility ? Is their alpha or beta stable ?

  2. Susanta Kumar kar | September 11, 2017 at 9:50 pm | Reply

    Excellent work, the list of debt free companies is available here

  3. superb

  4. Lakshmanakumar | August 18, 2017 at 6:52 am | Reply

    Very good Information for fresh investor like me. Thanks and keep going

  5. I am planning to invest in Penny stocks for a long term. Can you please guide. Open to buy in bulk

  6. V Nice info

  7. i have been trading for last 10yrs but made nothing .Please give me some guidance to keep some stocks for long term to cover my huge loss .

    • Ravi, avoid trading and opt for long term investing. Suggestion is to buy fundamentally strong stocks at undervalued price levels. This is easier said than done. This is why we suggest our readers to learn stock analysis for long term investing.

  8. Good information.Great work indeed. Thanks a lot.

  9. Shubho Mukherjee | January 21, 2017 at 12:43 am | Reply

    You have not mentioned anything about the charges that may apply on conditions as applicable to me for the subscribe which makes me a little circumspect bcoz all details then have not been provided to me . I will be in a better position to comment only if I have received certain information from U on a continuing basis for at least six months. On a plain reading what U have informed is definitely very informative and acceptable even by common sense wisdom and interesting to read as well

  10. Thanks a lot. Very informative. May God Bless You.

  11. hanumanth mokashi | January 10, 2017 at 2:51 pm | Reply

    I am 10 year old investors but still I am not gain in stock equity market so kindly only one single multibagger share shared me

  12. Good work

  13. Very lucid& informative for the layman to stwho wants to enter the jungle to stay away , where jackals & wolfs ,quacks proclaiming themselves as the pundits regarding stocks

  14. Its so informative ji.

  15. hi..very good insight..please share if you found any good fundamental penny stocks for 10 years long term

  16. Appreciated, Very useful information, Thank you.Please let me know id you have some penny stock suggestion
    Thank you
    BR

  17. Hello to every one, the contents present at this site are actually remarkable for people
    experience, well, keep up the good work fellows.

  18. very useful information. thanks for sharing such a fantastic article.please share me only 10 debt free stocks which can i buy in my portfolio.

  19. This is providing very good information. Really very good article who want to invest in good n debt free companies.

  20. I found the information you provided very useful. Now I am a retired person. Therefore tell me some penny stocks which are debt free, growing companies and management is good. Or you. may suggest some other modus operandi for making wealth by investing in stocks.

  21. reeses fun size | September 9, 2016 at 4:42 pm | Reply

    Right here is the right site for anybody who would like to understand this topic.
    You understand a whole lot its almost hard to argue
    with you (not that I personally would want to…HaHa). You definitely put a fresh spin on a topic that has been written about for many
    years. Great stuff, just wonderful!

  22. CHANDRASEKAR V | September 8, 2016 at 3:03 pm | Reply

    very useful information for beginners who wants to understand the stock market. Thank you

  23. Thank you Dude. Excellent Article and presented in simple form.
    Great Job.

  24. Krishna Kumar | August 26, 2016 at 8:47 pm | Reply

    Can you throw light on these two debt free companies. Are they good for investment? Kailash Auto Finance Ltd and Jmd Telefilms Industries Ltd

  25. I am intrested in debt free company, and i checked hear list of 70 debt free companies.I t is good information

  26. My son is 23 year old and your advice for long term saving from his salary in mutual fund and equity market, pl mention the select companies in both category

  27. Hi,
    Recently 63 Moons Technologies Ltd. was a favourite? I do not see this again in this update? Any recent negative development?

  28. I want to invest 1 lac re in share market for 10 year prospective , suggest me 5 multibager stocks.

  29. excellent

  30. Thanks a lot for sharing this, it is really helpful

  31. You provided all the details in very lucid manner.

  32. Arunachalam swaminathan | March 15, 2016 at 2:08 pm | Reply

    Very useful,information, compiled with deligence. Thanks

  33. VERY GOOD

  34. Mohammad Aamir | January 6, 2016 at 4:01 pm | Reply

    Congratulations, dear. The article provides the precise information I was looking for all around but unable to find. Very, very informative. Thanks again for this extremely useful post.

  35. dhananjay m sonsurkar | December 28, 2015 at 11:34 am | Reply

    very good information for new investors. please guide me for small & midcap multibagger stocks.

  36. awesome analysis

  37. good information about debt free company

  38. Chandrakant patel | October 22, 2015 at 4:23 pm | Reply

    Please guide me for small and multibagger stocks ,i am new in market

  39. out of my 20 years experience as investor of stocks I observe and learnt that investing in debt free stocks one can relax freely even when the stock market crashed.

  40. Good one

  41. I like zero debt free company

  42. I AM V HAPPY TO SEE THIS POST ,I WAS SEARCHING FOR THIS INFORMATION , PLEASE GIVE SOME INFORMATION ON FII HOLDINGS & AND HOW LARGE HOLDINGS HELP TO GROW THE COMPANY

  43. Sanyam jain | May 10, 2015 at 6:47 am | Reply

    Investing in Debt free companies are like investing in g-secs because their chances of running down are pretty low as compared to high debt cimpanies. But it takes decades for companies to become totally debt-free.

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