Introduction:
The debt-to-equity ratio measures a company’s financial leverage by comparing its total debt to shareholders’ equity. It reflects how much debt a company uses to finance its assets relative to the equity, indicating the risk associated with its financial structure.
This ratio helps investors and lenders assess a company’s financial health, solvency, and ability to manage debt. A higher ratio signals higher risk, while a lower ratio reflects stability. It is particularly useful for evaluating companies in capital-intensive industries like manufacturing or infrastructure.
Pidilite Industries Ltd
On 21 November 2024, Pidilite Industries Ltd(NSE: PIDILITIND) stock opened at ₹3,024.00, down 0.76% from the previous close of ₹3,001.05. It reached an intraday high of ₹3,024.00 and a low of ₹2,928.10. By market close, the stock settled at ₹2,930.00, declining 2.37%. The company’s market capitalization stood at ₹1,49,420 crore.
Pidilite Industries maintains a low debt-to-equity ratio of 0.04, reflecting strong financial discipline and minimal reliance on external borrowing. This robust capital structure supports the company’s steady growth and positions it favourably for long-term sustainability in the adhesives and industrial chemicals sector.
Pidilite Industries is a leading Indian adhesives and construction chemicals manufacturer, best known for its flagship product Fevicol. With innovative products spanning adhesives, sealants, and art materials, Pidilite continues to dominate its industry, supported by robust financials and global expansions.
SRF Ltd
On 21 November 2024, SRF Ltd (NSE: SRF) opened at ₹2185.05, down 0.62% from its previous close of ₹2198.70. The stock hit an intraday high of ₹2193.00 and a low of ₹2134.15, reflecting a 2.78% decline. Its market capitalization stood at ₹63,360.81 crore.
SRF Limited has a debt-to-equity ratio of 0.44, indicating a moderate level of leverage. This ratio reflects the company’s strategic use of debt to finance growth while maintaining a balance between equity and external funding, ensuring operational stability in the chemicals and packaging sector.
SRF Ltd specialises in manufacturing industrial and specialty chemicals, with a diversified portfolio including fluorochemicals, packaging films, and textiles. The company leverages strong R&D capabilities and a global presence to serve industries ranging from automotive to pharmaceuticals, reflecting consistent growth and market leadership.
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Gujarat Fluorochemicals Ltd
On 21 November 2024, Gujarat Fluorochemicals Ltd (NSE: FLUOROCHEM) opened at ₹3900.00, slightly above its previous close of ₹3892.35. It recorded an intraday low of ₹3760.60 before closing at ₹3822.35, marking a 1.80% decline. The market capitalization stood at ₹41,988.51 crore.
Gujarat Fluorochemicals demonstrates a manageable debt-to-equity ratio of 0.35, showcasing its effective financial management. This balanced approach supports the company’s expansion initiatives while keeping debt levels under control, ensuring steady performance in the chemicals and fluoropolymers industry.
Gujarat Fluorochemicals Ltd is a key player in fluoropolymers, industrial chemicals, and refrigerants. With a focus on innovation and sustainability, it caters to diverse sectors like automotive and electronics, contributing significantly to India’s fluorochemical exports and maintaining a strong market presence globally.
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.
