Introduction:
Debt refers to money an individual or company borrows from external sources, such as banks, financial institutions, or bondholders. It is repaid over time, often with interest. Debt can be in the form of loans, bonds, or credit lines.
Tata Group, known for its diverse portfolio, includes several companies with low debt-to-equity ratios. These companies have demonstrated steady performance and sound financial management across multiple sectors.
Tata Consultancy Services:
On December 20, Tata Consultancy Services Ltd. (BSE: TCS) opened at ₹4,310.10, reached a high of ₹4,381.95 and a low of ₹4,152.95, closing at ₹4,168.05, down by 2.42%. The company’s market capitalisation is ₹15,08,036.97 crore.
Tata Consultancy Services has a debt of ₹9,046.00 crore and a low debt-to-equity ratio of 0.09. The company is almost debt-free, showcasing strong financial stability. This positions TCS for sustainable growth with minimal reliance on borrowing.
Tata Consultancy Services is a global leader in IT services and consulting, offering a wide range of solutions across industries. Known for its strong digital transformation capabilities, TCS has consistently delivered strong growth. It is part of the Tata Group’s technology-driven portfolio.
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Trent Ltd:
On December 20, Trent Ltd. (BSE: TRENT) opened at ₹7,147.65, reached a high of ₹7,186.80 and a low of ₹6,788.10, closing at ₹6,829.00, down by 3.74%. The company’s market capitalisation is ₹2,42,762.39 crore.
Trent Ltd holds a debt of ₹1,842.20 crore with a debt-to-equity ratio of 0.39. It maintains a well-balanced financial structure, ensuring stability while managing its obligations effectively. Trent is well-positioned for growth with controlled debt levels.
Trent Limited is a prominent player in the retail sector, operating well-known brands like Westside. The company has shown robust expansion with a growing presence in the fashion and lifestyle market. It is an important part of the Tata Group’s retail and consumer-facing businesses.
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Tata Elxsi:
On December 20, Tata Elxsi Ltd. (BSE: TATAELXSI) opened at ₹7,300.00, reached a high of ₹7,322.85 and a low of ₹6,901.00, closing at ₹6,922.95, down by 4.25%. The company’s market capitalisation is ₹43,118.45 crore.
Tata Elxsi has a debt of ₹205.78 crore and a debt-to-equity ratio of 0.08. With almost no debt, it demonstrates exceptional financial strength. The company is poised for innovation and expansion without significant debt-related risks.
Tata Elxsi specialises in design and technology services, providing engineering solutions in sectors like automotive, healthcare, and media. Known for its innovative approach, the company offers cutting-edge product development. It is a key player in Tata Group’s focus on high-tech industries.
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.