Fundamentally strong businesses have good financials, such as a low debt-to-equity ratio, significant profit growth, and stable cash flow. These are the stocks that are more likely to survive market downturns and emerge stronger.
A debt ratio of zero indicates that the company does not finance additional operations by borrowing at all. For shareholders, this means that the firm is less likely to fail in the case of an economic crisis.
Here are three large-cap stocks with zero debt-to-equity ratio
Siemens Ltd.
The largest industrial manufacturing company Siemens Ltd is engaged in power generation and distribution, intelligent infrastructure for buildings, and distributed energy systems.
With a market capitalization of Rs 8,232 crore, the firm falls into the large-cap category. Shares closed at Rs 3,764.75 apiece, up 1.58 percent on June 28 from the previous close price.
For the previous five years, the firm has had a debt-to-equity ratio of zero. The company’s return on equity (ROE) and net profit margin have been steadily improving, with ROE at 13.28 percent and 9.56 percent, respectively, in FY23.
Revenue climbed by 18 percent yearly, rising from Rs 13,639.2 crore in FY 20-21 to Rs 16,137.8 crore in FY 21-22. Net profit increased by 42 percent, from Rs 1,088.8 crore to Rs 1,543 crore. (Consider September as the End of the Fiscal year)
Bharat Electronics Ltd
Bharat Electronics Ltd is an Indian state-owned aerospace and defence company under the Ministry of Defence, working in Electronic warfare systems, tank electronics, and simulators.
The company belongs to the large-cap category with a market capitalization of Rs 88,265 crore. Shares closed at Rs 120.75 apiece, up 1.98 percent on June 28 from the previous close price.
The company has had a debt-to-equity ratio of zero over the last five years. The company’s return on equity (ROE) and net profit margin has continuously improved, with ROE and net profit margin at 21.53 percent and 16.57 percent, respectively, in FY23.
Revenue grew by 15 percent yearly, from Rs 15,368 crore in FY 21-22 to Rs 17,734 crore in FY 22-23, For the same timeframe, Net profit increased by 25 percent from Rs 2,354 crore to Rs 2,940 crore.
SBI Life Insurance Company Ltd
SBI Life Insurance is a joint venture between BNP Paribas Cardif and the State Bank of India.Company Ltd is engaged in the business of life insurance products and numerous banking product packages such as housing loans and personal loans.
The company belongs to the large-cap category with a market capitalization of Rs 1,30,115 crore. Shares closed at Rs 1,299.90 apiece, up 1.05 percent on June 28 from the previous close price.
For the previous five years, the firm has had a debt-to-equity ratio of zero. The company’s return on equity (ROE) and net profit margin have been steadily improving, with ROE at 21.53 percent and 16.57 percent, respectively, in FY23.
Revenue fell 3 percent year on year, falling from Rs 82,983 crore in FY 21-22 to Rs 80,635 crore in FY 22-23. Net profit climbed by 14 percent within the same period, from Rs 1,506 crore to Rs 1,720 crore.
Written by Omkar C
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