Companies with a Monopoly status have to cater to a wide range of customer base, and, in such a scenario, being debt-free is a very positive signal portraying the efficiency of the company’s operations.
Listed below are three Monopoly stocks with low debt that one should add to their watchlist:
C. E. Info Systems Limited
With a market capitalization of Rs 11,971.15 crores, the stocks of C. E. Info Systems Limited closed at Rs 2,214.90 on Friday, gaining around 4.30 percent as compared to the previous closing levels of Rs 2123.40 apiece.
C. E. Info Systems is the most comprehensive tracking & navigation service provider enjoying a market share of more than 95 percent in GPS navigation under the brand name of ‘MapmyIndia’ domestically and ‘Mappls’ outside India.
Coming onto the annual consolidated financials, the company has been successful in increasing its prime business indicators such as the operating revenues as well as net profits with the former increasing from Rs 200 crores during FY21-22 to Rs 281 crores during FY22-23, and, the latter, keeping the timeframe the same, rose from Rs 87 crores to Rs 107 crores.
Moreover, the basic profitability metrics of the company rose with the return on equity (RoE) increasing from 19.51 percent during FY21-22 to 19.78 percent during FY22-23, and, the return on capital employed (RoCE) staying uniform at levels of around 26 percent.
The debt-to-equity ratio of the company, which is one of the most popular leverage ratios, is reported at 0.03 times.
Dreamfolks Services Limited
With a market capitalization of Rs 2,714.66 crores, the stocks of Dreamfolks Services Limited closed at Rs 511.95 on Friday, gaining around 2.50 percent as compared to the previous closing levels of Rs 499.85 apiece.
The company is India’s largest airport lounge access provider enjoying a market share of more than 95 percent for all India-issued card-based access to domestic lounges.
Coming onto the half-yearly consolidated financials, the company has been successful in increasing its prime business indicators such as the operating revenues as well as net profits with the former increasing from Rs 331 crores during September 2022 to Rs 441 crores during March 2023, and, the latter, keeping the timeframe the same, rose from Rs 28 crores to Rs 44 crores.
Moreover, the basic profitability metrics of the company were reported at healthy numbers with the return on equity (RoE) standing at 46.28 during FY22-23, and, the return on capital employed (RoCE) standing at 59.25 percent.
The debt-to-equity ratio of the company, which is one of the most popular leverage ratios, is reported at 0.01 times.
ZF Commercial Vehicle Control Systems India Limited
With a market capitalization of Rs 28,416.38 crores, the stocks of ZF Commercial Vehicle Control Systems India Limited closed at Rs 14,981.55 on Friday, slipping around 0.80 percent as compared to the previous closing levels of Rs 15,101.40 apiece.
Formerly known as WABCO India, the company manufactures air brake actuation systems for commercial vehicles and enjoys more than 85 percent stake with respect to vehicle braking systems.
Coming onto the annual consolidated financials, the company has been successful in increasing its prime business indicators such as the operating revenues as well as net profits with the former increasing from Rs 2,543 crores during FY21-22 to Rs 3,444 crores during FY22-23, and, the latter, keeping the timeframe the same, rose from Rs 142 crores to Rs 317 crores.
Moreover, the basic profitability metrics of the company rose with the return on equity (RoE) increasing from 6.72 percent during FY21-22 to 13.18 percent during FY22-23, and, the return on capital employed (RoCE) moving up from 9.24 percent to 17.39 percent.
The debt-to-equity ratio of the company, which is one of the most popular leverage ratios, is reported at a ‘nil’ rate.
Written by Amit Madnani
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