Top Debt Free Companies in India

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.

SL No.

Stock Name

Market Cap (₹ Crores)

Close Price (₹)

1

SBI Life Insurance Company Ltd

1,25,524.52

1,242.75

2

HDFC Asset Management Company Ltd

43,671.71

2,052.55

3

General Insurance Corporation of India

23,833.52

134.60

4

CRISIL Ltd

21,569.97

2,985.90

5

ZF Commercial Vehicle Control Systems India Ltd

17,939.07

9,515.20

6

Nippon Life India Asset Management Ltd

16,203.10

260.05

7

New India Assurance Company Ltd

15,169.84

93.65

8

Lakshmi Machine Works Ltd

14,041.79

13,144.05

9

Castrol India Ltd

12,962.45

131.05

10

IDFC Ltd

12,408.77

78.45

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 10 debt-free companies in 2022, 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.

Top 10 Debt-Free Companies in India 2023

Below is a list of the zero-debt companies with the largest market capitalization.

SL No

Company’s Name

Market Capital (Crores)

Close Price

Earning Per Share(Rs)

1

SBI Life Insurance Company Ltd

1,25,524.52

1,242.75

15.06

2

HDFC Asset Management Company Ltd

43,671.71

2,052.55

65.37

3

General Insurance Corporation of India

23,833.52

134.60

13.60

4

CRISIL Ltd

21,569.97

2,985.90

64.05

5

ZF Commercial Vehicle Control Systems India Ltd

17,939.07

9,515.20

74.91

6

Nippon Life India Asset Management Ltd

16,203.10

260.05

12.02

7

New India Assurance Company Ltd

15,169.84

93.65

1.18

8

Lakshmi Machine Works Ltd

14,041.79

13,144.05

169.47

9

Castrol India Ltd

12,962.45

131.05

7.66

10

IDFC Ltd

12,408.77

78.45

0.4

We have given a brief introduction to about the top three companies in the above category.

1. SBI Life Insurance Company Ltd

The SBI Life Insurance Company, Limited is primarily in the business of providing life insurance as well as annuities. It was initially established as a partnership between the State Bank of India and the BNP Paribas Cardif S.A.

The company provides a wide range of products for both individuals and groups, including participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group instant annuity, unit-linked insurance products, variable insurance products, and more.

2. HDFC Asset Management Company Ltd

Promoted by HDFC Ltd (52.72% of share) and Standard Life(21.24%), HDFC Asset Management Company (HDFC AMC) is one of the major asset management companies (AMCs) in India, with total assets under management (AUM) of 40,680,00 Cr. as of the end of the year 2020. The business provides customers with access to a comprehensive range of savings and investment solutions that cover a variety of asset types.

In addition, the company offers Portfolio Management and individually managed account services to high-net-worth individuals (HNIs), family offices, domestic corporations, trusts, provident funds, and both local and international institutions.

3. General Insurance Corporation of India

Reinsurance is a business in which the General Insurance Corporation of India is involved in. After India gained its independence, the Government of India (GOI) assumed control of 55 of the country’s insurance companies as well as the general insurance operations of 52 other insurers. 

Later, in November of 1972, the Government of India established the General Insurance Corporation of India (GIC) in order to manage the aforementioned organizations, which were subsequently merged into four separate businesses: the National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited, and the United India Insurance Company Limited (which is also a wholly-owned subsidiary of GIC).

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Debt Free Penny Stocks in India

Penny stocks are the first choice of traders, you know why? Learn everything about Penny Stocks here!

Moving on in the same direction, the below table represents the debt-free penny stocks in India in 2022

SL No

Company’s Name

Close Price

Market Capital (Crores)

1

Hathway Cable and Datacom Ltd

15.7

2,787.91

2

Cressanda Solutions Ltd

18.4

769.07

3

Rajnish Wellness Ltd

22.4

737.69

4

Toyam Sports Ltd

10.96

449.74

5

Mangalam Industrial Finance Ltd

4.84

448.51

6

HPC Biosciences Ltd

26.2

418.15

7

Swiss Military Consumer Goods Ltd

19.2

389.29

8

Globus Power Generation Ltd

29.25

282.96

9

IL & FS Investment Managers Ltd

7.55

243.38

10

Mercantile Ventures Ltd

19.3

204.74

We have given a brief introduction to about the top three companies in the above category.

1. Hathway Cable and Datacom Ltd

Hathway Cable & Datacom is involved in the distribution of internet services via cable and maintains a strategic investment in companies that operate in the cable television industry.

With a base of 0.97 million customers and 5.5 million Home passes, Hathway is one of the most successful companies in the cable television and broadband service industries. The first cable operator business in India to offer broadband services to its clients, Hathway was the pioneer in this space.

During the fiscal year 2019, Reliance Industries paid 4,100 Cr. to purchase a 72% share in the company through its wholly-owned subsidiary, Reliance Jio Infocomm Pvt Ltd. The acquisition of Hathway by Reliance Industries is the second-greatest investment the firm has made. The first largest investment was made in RJio. Hathway is of strategic importance for the expansion of RJio because it provides the acquirer with access to 6 million households.

2. Cressanda Solutions Ltd

Cressanda Solutions Limited, also known simply as Cressanda Solutions, is a firm established in India that offers information technology (IT), digital media, and IT-enabled services.

3. Rajnish Wellness Ltd

Rajnish Wellness Limited is a company that was established in the year 2015 and has its headquarters in Mumbai. The firm is in the industry of selling a variety of products, and the categories that they sell range from consumer durables to ayurvedic personal care products. The Company places a primary emphasis on the production of items that promote sexual well-being, energy revival, and personal care.

Cash Rich Companies in India

SL No

Company’s Name

Close Price

Market Capital (Crores)

Free Cash Flow Preceding Year (Crores)

1

SBI Life Insurance Company Ltd

1,242.75

1,25,524.52

21,785.19

2

HDFC Asset Management Company Ltd

2,052.55

43,671.71

1,243.50

3

General Insurance Corporation of India

134.60

23,833.52

8,991.77

4

CRISIL Ltd

2,985.90

21,569.97

380.33

5

ZF Commercial Vehicle Control Systems India Ltd

9,515.20

17,939.07

-38.05

6

Nippon Life India Asset Management Ltd

260.05

16,203.10

572.73

7

New India Assurance Company Ltd

93.65

15,169.84

-4,168.39

8

Lakshmi Machine Works Ltd

13,144.05

14,041.79

408.71

9

Castrol India Ltd

131.05

12,962.45

547

10

IDFC Ltd

78.45

12,408.77

48.82

We have given a brief introduction to about the top three companies in the above category.

We have given a brief introduction to about the top three companies in the above category.

1. SBI Life Insurance Company Ltd

The SBI Life Insurance Company, Limited is primarily in the business of providing life insurance as well as annuities. It was initially established as a partnership between the State Bank of India and the BNP Paribas Cardif S.A.

The company provides a wide range of products for both individuals and groups, including participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group instant annuity, unit-linked insurance products, variable insurance products, and more.

2. HDFC Asset Management Company Ltd

Promoted by HDFC Ltd (52.72% of share) and Standard Life(21.24%), HDFC Asset Management Company (HDFC AMC) is one of the major asset management companies (AMCs) in India, with total assets under management (AUM) of 40,680,00 Cr. as of the end of the year 2020. The business provides customers with access to a comprehensive range of savings and investment solutions that cover a variety of asset types.

In addition, the company offers Portfolio Management and individually managed account services to high-net-worth individuals (HNIs), family offices, domestic corporations, trusts, provident funds, and both local and international institutions.

3. General Insurance Corporation of India

Reinsurance is a business in which the General Insurance Corporation of India is involved in. After India gained its independence, the Government of India (GOI) assumed control of 55 of the country’s insurance companies as well as the general insurance operations of 52 other insurers. 

Later, in November of 1972, the Government of India established the General Insurance Corporation of India (GIC) in order to manage the aforementioned organizations, which were subsequently merged into four separate businesses: the National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited, and the United India Insurance Company Limited (which is also a wholly-owned subsidiary of GIC).

Looking for the best stocks in other fundamental factors? Find them in the articles below:

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 Debts, then there will be a low earning per share (EPS) Ratio.

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.

Now that you know about debt-free companies and the returns they give, why don’t you give them a shot?

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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 Debts, 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 slowdown 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?

No, L&T is not a Debt Free company, as of July 2021, it has a total debt of Rs.133505.42 Crore. But L&T is a great company and has got a good Price to Earnings ratio and offers a decent earning per share and net profit margin.

6. Is Sun Pharma Debt Free?

No, Sun Pharma is not a Debt Free company, as of July 2021, it has a total debt of Rs.8314.88 Crore. 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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About Author

Vikas Yadav

Vikas Yadav is a professional writer who also happens to be an engineer. He's been creating content for quite some time now, but it was his fascination and zeal for the stock market that steered him in the right direction. He is eager to spread knowledge about the "power of investment" through his collaboration with Alice Blue by creating high-quality educational content for the public at large. If you want to comprehend difficult subjects in simple terms, he's your man.

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