Companies manage their funding requirements through equity or debt or internally generated cash. The most preferred source of funding is internally generated cash, followed by debt and then equity, mainly because of the associated costs.
A few companies, however, claim that they have zero debt or are debt-free, sending a signal to stakeholders that they are able to manage their funding requirements predominantly through internally generated cash and thus they are cash-rich firms.
Here are three debt-free chemical stocks to add to your watchlist:
Foseco India
Foseco India is engaged in the manufacture of products used in the metallurgical industry which are in the nature of additives and consumables that improve the physical properties and performance of castings.
The company has a debt-to-equity ratio and a total debt of zero. It is a small-cap stock with a market capitalization of ₹ 2,314 crores and its shares settled at ₹ 3543.85 apiece. In the past year, the company’s share price increased by nearly 100 percent to deliver multibagger returns.
Tanfac Industries
Tanfac Industries is promoted by Aditya Birla Group and Tamil Nadu Industrial Development Corporation (TIDCO). It is amongst the leading producers of Hydrofluoric Acid and its derivatives.
The company has a debt-to-equity ratio and a total debt of zero. It is a small-cap stock with a market capitalization of ₹ 1,845 crores and its shares settled at ₹ 1908.95 apiece. In the past year, the company’s share price increased by 263.23 percent to deliver multibagger returns.
Uniphos Enterprises
Uniphos Enterprises. is currently engaged in the business of trading chemicals and other products.
The company has a debt-to-equity ratio and a total debt of zero. It is a small-cap stock with a market capitalization of ₹ 1,126 crores and its shares settled at ₹ 158.75 apiece. In the past year, the company’s share price increased by 16.38 percent.
Multibase India
Multibase India is engaged in the business of manufacturing, trading and selling thermoplastic elastomers and silicone-based products.
The company has a debt-to-equity ratio and a total debt of zero. It is a micro-cap stock with a market capitalization of ₹ 305 crores and its shares settled at ₹ 238.15 apiece. In the past year, the company’s share price increased by 25.74 percent.
Narmada Gelatin
Narmada Gelatines Ltd is engaged in the manufacture and sale of Ossein and Gelatine.
The company has a debt-to-equity ratio and a total debt of zero. It is a micro-cap stock with a market capitalization of ₹ 267 crores and its shares settled at ₹ 434.00 apiece. In the past year, the company’s share price increased by 90.39 percent.
Written by Simran Bafna
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