Significance of debt to equity under 1:
A debt-to-equity ratio of less than 1 means that a company relies more on its own funds than debt to run its business. This is generally seen as a good sign because it shows the company is financially stable and carries lower risk.
The stocks listed below have a debt-to-equity ratio of less than 1:
1. Glenmark Pharmaceutical Limited
Glenmark Pharmaceuticals Ltd is a global research-driven pharma company, operating in more than 80 countries, with businesses in generics, specialty medicines, and over-the-counter products.
With a market capitalization of Rs.58,827.58 crores, the shares of Glenmark Pharmaceutical Limited closed at Rs.2,084.60, down by 1.20 percent from its previous day closing price of Rs.2,110.
In the first quarter of FY26, the company’s revenue rose to Rs.3,264 crore, compared to Rs.3,244 crore in the same quarter of FY25. However, net profit fell to Rs.47 crore from Rs.340 crore for the same period.
The company has a strong return on equity of 15.8 percent and a return on capital employed of 19.4 percent. The P/E ratio is 43.93 with an industry average of 33.3. The debt-to-equity ratio of the company is 0.28, indicating it has a low level of debt compared to equity.
2. Radico Khaitan Limited
The company is among India’s earliest and biggest producers of Indian Made Foreign Liquor. With a market capitalization of Rs.40,847.67 crores, the shares of Radico Khaitan Limited closed at Rs.3,051.35, up by 1.41 percent from its previous day closing price of Rs.3,009.05.
In the first quarter of FY26, the company’s revenue rose to Rs.1,506 crore, compared to Rs.1,137 crore in the same quarter of FY25. However, net profit rose to Rs.133 crore from Rs.76 crore for the same period.
The company has a strong return on equity of 13.6 percent and a return on capital employed of 16.2 percent. The P/E ratio is 98.31 with an industry average of 32.88. The debt-to-equity ratio of the company is 0.28, indicating it has a low level of debt compared to equity.
3. Page Industries Limited
Page Industries Limited, established in 1995, holds the exclusive rights from JOCKEY International Inc. The company manufactures, distributes, and sells JOCKEY products in India and several other countries, including Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan, and the UAE.
With a market capitalization of Rs.48,567.59 crores, the shares of Page Industries Limited closed at Rs.43,543.25, down by 1.64 percent from its previous day closing price of Rs.44,268.15.
In the first quarter of FY26, the company’s revenue rose to Rs.1,317 crore, compared to Rs.1,278 crore in the same quarter of FY25. However, net profit rose to Rs.201 crore from Rs.165 crore for the same period.
The company has a strong return on equity of 48.5 percent and a return on capital employed of 59.4 percent. The P/E ratio is 65.84 with an industry average of 28.63. The debt-to-equity ratio of the company is 0.19, indicating it has a low level of debt compared to equity.
4. Cochin Shipyard Limited
Cochin Shipyard Limited is a prominent company in building, repairing, and upgrading all types of ships, including extending their service life. The company has constructed and serviced some of the largest vessels for customers worldwide and has exported around 45 ships to clients outside India.
With a market capitalization of Rs.50,005.08 crores, the shares of Cochin Shipyard Limited closed at Rs.1,900.75, down by 0.32 percent from its previous day closing price of Rs.1,906.90.
In the first quarter of FY26, the company’s revenue rose to Rs.977 crore, compared to Rs.710 crore in the same quarter of FY25. However, net profit rose to Rs.188 crore from Rs.181 crore for the same period.
The company has a strong return on equity of 15.8 percent and a return on capital employed of 20.4 percent. The P/E ratio is 56.38 with an industry average of 54.38. The debt-to-equity ratio of the company is 0.09, indicating it has a low level of debt compared to equity.
5. Coromandel International Limited
Coromandel International Limited is a leading agricultural solutions company in India, providing a wide range of products and services for farmers.
With a market capitalization of Rs.66,737.70 crores, the shares of Coromandel International Limited closed at Rs.2,262.90, down by 1.78 percent from its previous day closing price of Rs.2303.95
In the first quarter of FY26, the company’s revenue rose to Rs.7,042 crore, compared to Rs.4,729 crore in the same quarter of FY25. However, net profit rose to Rs.502 crore from Rs.309 crore for the same period.
The company has a strong return on equity of 16.9 percent and a return on capital employed of 23.2 percent. The P/E ratio is 33.63 with an industry average of 29.94. The debt-to-equity ratio of the company is 0.07, indicating it has a low level of debt compared to equity.
Written by Jhanavi Sivakumar
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