Achieving a net debt-free status signifies a company has successfully eliminated its debt obligations, typically through proactive debt reduction strategies and improved operational efficiency.
This financial milestone enhances cash flow, enabling greater investment in growth opportunities, new technologies, and expansion, ultimately strengthening the company’s market position and financial health.
Here are the stocks that turned Debt free in FY24:-
Reliance Power Ltd
Reliance Power was founded to develop, construct, and operate power plants in India and abroad. The Company, through its subsidiaries, has a vast portfolio of power production capacity, both operational and under construction.
With a market capitalization of Rs 12,979 crore, the shares closed at Rs 32.3 per share, increased around 5 percent as compared to the previous closing price.
The company has successfully repaid its ₹800 crore debt, marking its transition to a debt-free status on a standalone basis. This significant financial milestone was achieved through multiple debt settlement agreements with various banks, including IDBI Bank, ICICI Bank, Axis Bank, and DBS, between December 2023 and March 2024
Moreover, following this development, Reliance Power is poised to focus on its order book and growth strategies, particularly in light of the growth-oriented Budget 2024.
If we look into the company’s financial condition for FY23-24, revenue stands at Rs 7,893 crore, during the same period net loss stands at Rs 2,068 crore.
Tata Motors Ltd
Tata Motors Ltd. is a top worldwide vehicle manufacturer. As part of the legendary multinational corporation, the Tata group, it provides the globe with a diversified portfolio of automobiles, sports utility vehicles, trucks, buses, and defense vehicles.
With a market capitalization of Rs 3.92 lakh crore, the shares closed at Rs 1,067 per share, increased around 2.47 percent as compared to the previous closing price.
Tata Motors’ India business is now net debt-free, enhancing cash flow for investments. The company’s net debt was ₹50,000 crore in March 2023, now reduced to a net cash position.
Tata Motors aims to make Jaguar Land Rover debt-free by FY2025, achieve over 25% market share, and break even on EV EBITDA by FY2026.
Looking into the company’s financial condition for FY23-24, revenue stands at Rs 437,928 crore, during the same period net profit stands at Rs 34,199 crore.
Inox Wind Ltd
Inox Wind Limited manufactures wind turbine generators and provides wind energy solutions to IPPs, utilities, PSUs, corporates, and retail investors. Inox Wind Ltd is a fully integrated player in the wind energy sector, offering complete turnkey solutions.
With a market capitalization of Rs 22,712 crore, the shares closed at Rs 174 per share, increased around 1.33 percent as compared to the previous closing price.
Inox Wind achieved debt-free status after the promoter of the company, Inox Wind Energy Limited (IWEL) injected Rs 900 crore. The funds were raised by IWEL on May 28, 2024, through the sale of equity shares of IWL through block deals on the stock exchanges, witnessing the participation of several marquee investors. The funds will be utilized by IWL to completely pare down its external term debt to achieve a net debt-free status.
Looking into the company’s financial condition for FY23-24, revenue stands at Rs 1,743 crore, during the same period net loss stands at Rs (53) crore.
Written by:- Abhishek Singh
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