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4 min read | Updated on August 26, 2024, 16:30 IST
SUMMARY
The article highlights five companies from the NIFTY50 index that have minimal or no debt, showcasing their financial stability. The list includes ITC Ltd, SBI Life Insurance Company Ltd, Maruti Suzuki India Ltd, Divi's Laboratories Ltd, and Cipla Ltd, all boasting positive year-to-date returns.
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Financial stability with minimal debt exposure - Top 5 almost debt-free companies in the NIFTY50 index
A company can enjoy long-term financial stability when there is little or no debt at all.Debt proves to be boon for businesses where the operations are highly capital intensive and thus help in creating high turnover as well. However, if the debt is not managed well it might eat into large part of profits as well. In fact, just a few publically traded firms have total debts of either none or close to zero. Here we brought you the top 5 almost debt free companies among the NIFTY50 index.
The last traded price of ITC Ltd is ₹505.25. The company's market capitalisation is ₹6,32,715.01 crore. ITC Ltd has a debt-to-equity ratio of 0 and a total debt of ₹303 crore. The current ratio of the company is 2.05. The year-to-date (YTD) return for ITC Ltd is 7.83%.
The company was established in 1981. A joint venture agreement was signed between the Government of India and Suzuki Motor Corporation (SMC), Japan in 1982. The principal activities of the company are manufacturing, purchase and sale of motor vehicles, components and spare parts.
The last traded price of Maruti Suzuki India Ltd is ₹12,257.30. The company's market capitalisation is ₹3,85,948.06 crore. Maruti Suzuki has a debt-to-equity ratio of 0 and a debt amounting to ₹119 crore. The current ratio is 0.72, with a YTD return of 19.34%.
SBI Life Insurance Company Ltd has a last traded price of ₹1,792.45. The market capitalisation is ₹1,79,603.00 crore. The debt to equity ratio stands at 0, and the company has no recorded debt. The current ratio is 1.7, and the YTD return is 25.16%.
Divi's Laboratories Ltd has a last traded price of ₹4,890.95. The market capitalisation is ₹1,29,962.81 crore. The company has a debt to equity ratio of 0 and a debt of ₹3 crore. The current ratio for Divi's Laboratories is 7.57. The YTD return of the company is 25.02%.
The last traded price of Cipla Ltd is ₹1,586.15. The company's market capitalisation is ₹1,27,957.87 crore. Cipla Ltd has a debt-to-equity ratio of 0.02 and a total debt of ₹559 crore. The current ratio is 2.78. The YTD return for Cipla Ltd is 26.77%.
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