Debt Free Companies

Debt Free Companies: Do They Really Bring Huge Profits???

The below table shows the top debt-free companies/stocks in India, arranged according to market capitalization.

Debt-Free Stock ListsMarket CapClose Price
Life Insurance Corporation Of India3,87,089.86610.9
SBI Life Insurance Company Ltd1,38,681.041,423.65
Siemens Ltd1,27,711.853,589.05
HDFC Asset Management Company Ltd61,454.572,878.70
General Insurance Corporation of India46,149.49265.95
ZF Commercial Vehicle Control Systems India Ltd31,337.4816,297.75
Nippon Life India Asset Management Ltd26,101.12412.1
New India Assurance Company Ltd25,544.00164.9
IDFC Ltd18,799.82118.2
Lakshmi Machine Works Ltd13,892.6512,935.05

Debts are an integral part of finances. Almost everybody, at some point in time, had debts on them. But have you ever felt the sense of freedom you get when you have cleared all your debts? Isn’t that a great feeling? Indeed it is.

Similarly, a company cannot simply grow on its limited capital. They need extra money, and one way to raise additional capital is through debts. It is sort of a loan that can directly affect profits.

Some companies perform and manage their finances well and are completely debt-free.

This article will help you learn about India’s Top debt-free companies in 2024, the pros and cons of a debt-free company, and cash-rich companies in India.

Content:

What Does Debt Free Company Mean?

A company can be considered debt-free if there is zero debt on its balance sheet. Companies like these don’t have any outstanding loans and have more control over their finances. They are more self-reliant and can make swift decisions.

Generally, a debt-free company is considered a good company, as they have fewer liabilities to cover and can invest its funds for the company’s better performance.

Debt-Free Companies in India 2024 – 1 Year Return

Below is a list of the debt companies in India 2024 with the 1 Year Return. 

Debt-Free Stock ListsMarket CapClose PriceTotal Debt1 Year Return
General Insurance Corporation of India46,149.49265.95098.47
New India Assurance Company Ltd25,544.00164.9078.95
ZF Commercial Vehicle Control Systems India Ltd31,337.4816,297.75072.69
Nippon Life India Asset Management Ltd26,101.12412.1059.7
IDFC Ltd18,799.82118.2052.71
HDFC Asset Management Company Ltd61,454.572,878.70038.97
Siemens Ltd1,27,711.853,589.05027.65
SBI Life Insurance Company Ltd1,38,681.041,423.65016.06
UTI Asset Management Company Ltd10,011.35790.35015.56
Lakshmi Machine Works Ltd13,892.6512,935.050-1.1

Debt-Free Companies in India 2024 – 1 Month Return

Below is a list of the debt companies in India 2024 with the 1 Month Return. 

Debt-Free Stock ListsMarket CapClose PriceTotal Debt1 Month Return
General Insurance Corporation of India46,149.49265.95016.55
Nippon Life India Asset Management Ltd26,101.12412.1012.28
ZF Commercial Vehicle Control Systems India Ltd31,337.4816,297.7504.21
Siemens Ltd1,27,711.853,589.0504.2
New India Assurance Company Ltd25,544.00164.902.79
SBI Life Insurance Company Ltd1,38,681.041,423.6501.86
HDFC Asset Management Company Ltd61,454.572,878.7000.72
UTI Asset Management Company Ltd10,011.35790.350-0.22
Brightcom Group Ltd3,360.8416.650-1.77
Life Insurance Corporation Of India3,87,089.86610.90-3.52

Debt-Free Companies in India 2024 –  PE Ratio

The below table shows the Debt-Free Companies in India 2024 based on the PE Ratio.

Debt-Free Stock ListsMarket CapClose PriceTotal DebtPE Ratio
Brightcom Group Ltd3,360.8416.6502.37
IDFC Ltd18,799.82118.2010.3
UTI Asset Management Company Ltd10,011.35790.35017.78
Nippon Life India Asset Management Ltd26,101.12412.1029.59
Lakshmi Machine Works Ltd13,892.6512,935.05033.4
HDFC Asset Management Company Ltd61,454.572,878.70037.04

Debt-Free Companies in India 2024 – Daily Volume

The below table shows the Debt-Free Companies in India 2024 based on the Daily volume.

Debt-Free Stock ListsMarket CapClose PriceTotal DebtDaily Volume
Life Insurance Corporation Of India3,87,089.86610.907,18,571.00
New India Assurance Company Ltd25,544.00164.9067,05,888.00
Brightcom Group Ltd3,360.8416.65054,91,679.00
HDFC Asset Management Company Ltd61,454.572,878.7004,42,892.00
IDFC Ltd18,799.82118.2026,78,647.00
General Insurance Corporation of India46,149.49265.95021,35,462.00
SBI Life Insurance Company Ltd1,38,681.041,423.65020,49,132.00
Nippon Life India Asset Management Ltd26,101.12412.102,81,986.00
Siemens Ltd1,27,711.853,589.0501,76,350.00
UTI Asset Management Company Ltd10,011.35790.3501,00,787.00

Introduction to Top Debt-Free Companies in India 2024

Debt-Free Companies In India 2024 – 1 Year Return

General Insurance Corporation of India

General Insurance Corporation of India is a global reinsurance provider handling risk associated with insurance policies worldwide. It offers diverse reinsurance solutions across various classes like fire, motor, health, and supports Indian life insurance companies through treaty and facultative reinsurance.

New India Assurance Company Ltd

The New India Assurance Company Limited is a multinational insurer offering various insurance products like Fire, Marine, Motor, Health, and more. With an extensive presence in India and abroad, it operates through numerous offices and subsidiaries globally.

ZF Commercial Vehicle Control Systems India Ltd

ZF Commercial Vehicle Control Systems India Limited manufactures air brake actuation systems for commercial vehicles, also providing software development services. With subsidiary ZF CVCS Manufacturing India Pvt Ltd, it operates in the automotive segment, owning multiple facilities and an aftermarket distribution network.

Debt-Free Companies In India 2024 – 1 Month Return

Nippon Life India Asset Management Ltd

Nippon Life India Asset Management Limited serves as the investment manager for Nippon India Mutual Fund, managing various funds including ETFs, pension funds, and offshore schemes. With global presence in Asia, Middle East, Europe, and the US, it operates through subsidiaries and representative offices.

Siemens Ltd

Siemens Limited, a technology company, operates through segments like Digital Industries, Smart Infrastructure, Mobility, and Energy businesses. It offers diverse solutions in automation, energy transmission, transportation, and energy value chain services. Additionally, its electrical division focuses on AC chargers’ design and engineering.

SBI Life Insurance Company Ltd

SBI Life Insurance offers various life insurance segments like Participating, Non-Participating, and Linked, providing individual and group plans, retirement solutions, savings plans, and micro-insurance policies tailored to meet diverse financial needs and preferences.

Debt-Free Companies In India 2024 – Daily Volume

Life Insurance Corporation Of India

Life Insurance Corporation of India is a prominent insurer providing a wide spectrum of individual and group insurance solutions encompassing protection, pension, savings, and health products. With around 44 diverse insurance plans, it serves both domestic and international markets effectively.

Brightcom Group Ltd

Brightcom Group Limited provides digital marketing solutions worldwide, connecting advertisers with audiences through various media. Serving renowned advertisers and collaborating with top publishers and agencies, it ensures effective outreach strategies in the digital landscape.

HDFC Asset Management Company Ltd

HDFC Asset Management Company Limited manages HDFC Mutual Fund and alternative investment funds, offering diverse investment products like mutual funds, portfolio management, and advisory services to a broad clientele, including HNIs, corporates, trusts, and institutions.

Debt-Free Companies In India 2024 – PE Ratio

IDFC Ltd

IDFC Limited, an Indian NBFC, operates in investments through its Financing segment, including entities like IDFC Bank, IDFC Securities, and IDFC Mutual Fund. Offering banking, financial services, and mutual funds, it also engages in philanthropic endeavors through IDFC Foundation.

UTI Asset Management Company Ltd

UTI Asset Management Company Ltd, an Indian firm, offers a spectrum of asset management services, including mutual funds, portfolio management, and advisory services. Managing assets for diverse clients, it caters to both institutional and individual investors across varied investment categories.

Lakshmi Machine Works Ltd

Lakshmi Machine Works Ltd, an Indian textile machinery manufacturer, produces spinning machinery, CNC machine tools, and aerospace components. Operating through divisions like Textile Machinery, Machine Tools, Foundry, and Advanced Technology, it serves global markets with precision and customized solutions.

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Top Advantages & Disadvantages of Debt-Free Companies

Nothing is perfect in this world, and everything has its pros and cons. The same goes for Debt-free companies.

What are they?

Well, keep reading, and you will learn about the pros and cons of a debt-free company.

Advantages of Debt-Free Company

  • Being debt-free means being free from interest payments on loans and debts.
  • Debt-free companies have strong financials and have less chance of going bankrupt.
  • Debt-free companies can handle economic slowdown as they have low outgoing expenses.

Disadvantages of Debt-Free Company

  • If a company opts for equity financing over debt, it may end up paying higher taxes. Equity financing is the capital raised by the sale of shares.
  • If equity financing is preferred over Debt, then there will be a low earning per share (EPS) Ratio.

Disclaimer: The above article is written for educational purposes. The securities quoted are exemplary and are not recommendatory.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

FAQ(Frequently Asked Questions)

1. How To Check Debt Of A Company?

A company’s debts can be generally found on its balance sheet. But you can calculate with a simple formula, Total Debts = Total Assets/Total Liabilities.

2. Is A Debt-Free Company Good?

Well, whether a debt-free company is good or not is a subjective thing. But if a company opts for equity financing over debt, it may end up paying higher taxes. And if equity financing is preferred over Debt, then there will be a low earning per share (EPS) Ratio.

3. Why Do Companies Want To Be Debt Free?

Being debt-free means being free from interest payments on loans and debts. Debt-free companies have strong financials and have less chance of going bankrupt. Debt-free companies can handle economic slowdowns as they have low outgoing expenses.

4. Is ITC Debt Free Company?

Yes, ITC is a Debt Free company, and it also is a Debt Free company that pays dividends.

5. Is L&T Debt Free?

Yes, L&T is a Debt Free company; as of October 2022. L&T is a great company and has got a good Price to Earnings ratio and offers decent earnings per share and net profit margin.

6. Is Sun Pharma Debt Free?

No, Sun Pharma is not a Debt Free company; as of October 2022. But Sun Pharma has got a great Price to Earnings ratio and offers a decent earning per share and net profit margin.

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