Best Debt Free Stocks under Rs 1000 Investors are always looking for stocks that have the potential to be multi-baggers in the future. Companies that manage debt wisely can help themselves out of economic downturns. Companies with no debt are more likely to have better financials than peers with debt due to interest payments and cash flow concerns. In this article, we will look at some debt-free stocks that are priced under Rs. 1,000.

Best Debt Free Stocks under Rs 1000

Best Debt Free Stocks Under Rs 1000 #1 -Life Insurance Corporation of India Ltd.

Life Insurance Corporation of India Ltd. Logo Image

LIC was established after the LIC Act 1956 was passed in parliament. The company is mainly into insurance. Life insurance products, such as pension plans, health plans, and group insurance schemes, are among the various types of insurance. The company relies on agent selling, which helps with reach, and the count in 2023 was 13,47,325 compared to 13,26,432 in 2022.

There were 8 zonal offices, 113 divisional offices, 2,048 branch offices, 1,580 satellite offices, and 1,169 mini offices as of FY23. In FY23, the company introduced seven new Individual products and modified versions of five existing products. 

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The company earns from two segments: premium earned and investment income. Premium earned accounts for 60.75% of the revenue, with the remaining 39.25% coming from investment income. (Interest, Dividends, and Rent – 35.10%, Net Profit on Investment Sales and Transfer/Gain from Change in Fair Value – 4.14%).

The company earned Rs. 7,84,628 crore in FY23 as compared to Rs. 7,23,813 crore in FY22, an increase of 8.40%. Net profits stood at Rs. 35,997 crore in FY23 as compared to Rs. 4,125 crore in FY22, an increase of 772.65%.

ParticularsAmountParticularsAmount
CMP₹ 1,073.4Market Cap (Cr.)₹ 6,99,702 Cr
EPS (TTM)₹ 58.86Stock P/E (TTM)14.17
RoCE(%) (TTM)0.72%ROE(%) (TTM)61.51%
Enterprise Value (Cr.)₹ 2,92,784.51Promoter Holding (%)96.5
Debt to Equity0Price to Book Value11.56
Net Profit Margin (%)4.05%Current Ratio3.32

Best Debt Free Stocks Under Rs 1000 #2 – Techno Electric & Engineering Ltd.

Techno Electric & Engineering Ltd. Logo Image

Techno Electric & Engineering Company Ltd. (TEECL) was founded in West Bengal in 2005. TEECL provides services across the three key industry segments of power generation, transmission, and distribution, specialising in engineering, procurement, and construction (EPC), asset ownership, operations, and maintenance. The portfolio comprises the successful execution of over 400 projects in India and overseas, with a team of 400 experienced professionals in different verticals.

In FY23, the company’s EPC segment contributed 90.93% of total revenue, while others contributed 9.06% in FY23. Revenues in FY23 were Rs. 829.49 crore, down 16.98% from Rs.999.16 crore in FY22.

Net profits stood at Rs. 186.85 crore as compared to Rs. 263.89 crore in FY22, down 29.19%. There was a 90.24 crore profit from discontinued operations, which were wind assets sold to focus on EPC and explore other diversification opportunities.

ParticularsAmountParticularsAmount
CMP₹ 763.15Market Cap (Cr.)₹ 8,125.24
EPS (TTM)₹ 17.40Stock P/E (TTM)46.12
RoCE (%)10.42%ROE (%)6.96%
Enterprise Value (Cr.)₹ 3,482.24Promoter Holding (%)61.51%
Debt to Equity0Price to Book Value4.48
Net Profit Margin (%)22.52Current Ratio4.42

Best Debt Free Stocks Under Rs 1000 #3 – Zen Technologies Ltd.

 Best Debt Free Stock under Rs 1000 Zen Technologies Ltd. Logo Image

Zen Technologies was founded in 1993 and is headquartered in Hyderabad, India, with offices in India, the United Arab Emirates, and the United States. Zen Technologies Limited designs, develops, and manufactures combat training solutions for the training of defence and security forces all over the world, as well as Counter-Drone solutions for protecting borders, critical infrastructure, and other critical infrastructure.

The company has an in-house product portfolio of over 40 products, including Live Fire, Live Instrumented, Virtual and Constructive training systems for individual and group training, and Counter Drone Solutions. Over 125 patents have been filed or received by Zen Technologies, demonstrating its strong R&D capabilities.

Only the Military Training and Operations segment generates revenue for the company. In FY23, domestic accounts for 47.79% of total revenue, while overseas accounts for 52.20%. Revenue in FY23 stood at Rs. 218.84 crore as compared to Rs. 69.75 crore in FY22, an increase of 213.74%. Net profits were Rs. 49.96 crore in FY23, up from Rs. 2.60 crore in FY22, a 1,821.53% increase. The increase in profits is due to robust demand from the military.

ParticularsAmountParticularsAmount
CMP₹ 802Market Cap (Cr.)₹ 6,409.64 Cr
EPS (TTM)₹ 10.95Stock P/E (TTM)70.32
RoCE (%)37.84%ROE (%)24.21%
Enterprise Value (Cr.)₹ 2,457.39Promoter Holding (%)55.07%
Debt to Equity0.02Price to Book Value20.45
Net Profit Margin (%)22.83%Current Ratio2.69

Best Debt Free Stocks Under Rs 1000 #4 – NESCO Ltd.

Best Debt Free Stock under Rs 1000 
 NESCO Ltd Logo Image

Nesco Ltd. (formerly New Standard Engineering Co Ltd.) is a diversified company with four business segments that was founded in 1946 in Mumbai, Maharashtra. Nesco Ltd is a diverse Indian-based company with interests in engineering, real estate, and services.

NESCO IT Park (Leasing) in Mumbai, Bombay Exhibition Centre (Organising Indian and Foreign Corporates, Associations, and Events), NESCO Foods (Catering for Banquets, Exhibitions, and Offices), and Indabrator (Manufacturer of Surface Preparation Equipment) are all owned and operated by the company.

In FY23, the company earned 48.44% of its revenue from Realty – IT, 25.58% from BEC, 7.64% from Indabrator, 7.98% from Nesco Foods, and 10.36% from income from investments. The revenues in FY23 stood at Rs. 546 crore as compared to Rs. 337.39 crore in FY22, an increase of 61.83%. Net profits stood at Rs. 290.63 crore in FY23 as compared to Rs. 189.17 crore in FY22, an increase of 53.63%.

ParticularsAmountParticularsAmount
CMP₹ 885Market Cap (Cr.)₹ 5,891.86 Cr
EPS (TTM)₹ 45.26Stock P/E (TTM)19.52
RoCE (%)18.3%ROE (%)15.21%
Enterprise Value (Cr.)₹ 3,626.03Promoter Holding (%)68.54%
Debt to Equity0Price to Book Value3.17
Net Profit Margin (%)53.22%Current Ratio4.7

Best Debt Free Stocks Under Rs 1000 #5 – Shanti Gears Ltd.

Best Debt Free Stock under Rs 1000 -Shanti Gears Ltd Logo Image

The company was incorporated in 1972. Shanthi Gears, which began as a manufacturer of textile machinery gears, has expanded into other industries, including process, power steel, cement, sugar, and aviation gears. The product line includes everything from simple gears for hand-driven jacks to high-tech gears for supersonic jet aircraft. As of March 31, 2023, the company had 536 employees on its payroll.

It is a subsidiary of Tube Investments of India, which owns 70.46% of the company. It falls under the purview of the Murugappa Group. Gears and Gear products are the company’s only source of revenue. In FY23, it earned 93.46% from domestic sources and the remaining 6.53% from sources outside of India. 

Revenues in FY23 were Rs. 445.65 crore, up from Rs. 337.07 crore in FY22, a 32.20% increase. Net profit in FY23 was Rs. 67.05 crore as compared to Rs. 42.47 crore in FY22, an increase of 57.87%. 

ParticularsAmountParticularsAmount
CMP₹ 519.35Market Cap (Cr.)₹ 4,078.21 Cr
EPS₹ 9.93Stock P/E (TTM)57.07
RoCE (%)31.71%ROE (%)23.31%
Enterprise Value (Cr.)₹ 2,700.27Promoter Holding (%)70.47%
Debt to Equity0Price to Book Value14.39
Net Profit Margin (%)15.04%Current Ratio3.6

List of Best Debt Free Stocks Under Rs 1000

We will look at some of Best Debt Free Stock under Rs 1000.

Stock NameCMPMarket Cap (Cr.)Debt to Equity
Intellect Design Arena₹ 940.65₹ 12,442 Cr0
Sun TV Network₹ 636₹ 24,711 Cr0
IRCTC₹ 963₹ 74,364 Cr0
Vedant Fashions₹ 983.9₹ 27,377 Cr0
Birlasoft ₹ 818.7₹ 22,690 Cr0
PB Fintech₹ 1,030.6₹ 41,131 Cr0
Gujarat Gas ₹ 577.6₹ 38,646 Cr0
Relaxo Footwears₹ 840.6₹ 21,428 Cr0
Rites₹ 762₹ 16,889 Cr0
Tejas Networks₹ 759.65₹ 14,695 Cr0

Conclusion

In this article, we looked at some of Best Debt Free Stock under Rs 1000 in India. However, having little or no debt should not be the sole criterion for investing in stocks. The better the financials, the more the company can expand without having to worry about interest payments. Companies that can raise funds through internal accruals can benefit from the company’s returns. Every investor should conduct research or consult with a financial advisor before investing.

In your opinion, what parameters should make a good checklist for investing in penny stocks? How about you let us know in the comments below?

Written by Santhosh

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