One of the most important factors in judging the financial strength of a company is the debt level. Being debt-free, the Retail Investors generally tend to build confidence in the company.
Listed below are three debt-free stocks that are trading at a price-to-earnings (P/E) ratio that is less than the industry average:
Panama Petrochem Limited
With a market capitalization of Rs 1,865 crores, the stocks of Panama Petrochem Limited, engaged in the business of manufacturing and exporting various Petroleum specialties, closed at Rs 308 on Friday, slipping around 0.40 percent as compared to the previous closing levels of Rs 309.65 apiece.
The company’s stock exhibits attributes of an ‘undervalued’ one since its P/E ratio of 9.67 is comparatively less than the industry average of 11.49.
During the recent financial years, the company reported an increase in both the basic business parameters such as operating revenues and net profits with the former jumping from Rs 2,132 crores during FY21-22 to Rs 2,248 crores during FY22-23, and, the latter, during the same period, rising sharply from Rs 230 crores to Rs 232 crores.
In addition to the above, the debt-to-equity ratio, one of the most tracked upon leverage metrics, was reported at a ‘nil’ rate for FY22-23.
Maharashtra Seamless Limited
With a market capitalization of Rs 13,395.82 crores, the stocks of Maharashtra Seamless Limited, engaged in the business of manufacturing Steel Pipes and Tubes, closed at Rs 999.75 on Friday, gaining 3.10 percent as compared to the previous closing levels of Rs 969.55 apiece.
The company’s stock exhibits attributes of an ‘undervalued’ one since its P/E ratio of 12.04 is comparatively less than the industry average of 18.80.
During the recent financial years, the company reported an increase in both the basic business parameters such as operating revenues and net profits with the former jumping from Rs 4,200 crores during FY21-22 to Rs 5,716 crores during FY22-23, and, the latter, during the same period, rising sharply from Rs 433 crores to Rs 797 crores.
In addition to the above, the debt-to-equity ratio, one of the most tracked upon leverage metrics, was reported at a ‘nil’ rate for FY22-23.
Mazagon Dock Shipbuilders Limited
With a market capitalization of Rs 40,577 crores, the stocks of Mazagon Dock Shipbuilders Limited, a prominent shipyard in India, closed at Rs 2,011.85 on Friday, a flat movement as compared to the previous closing levels of Rs 2,012.85 apiece.
The company’s stock exhibits attributes of an ‘undervalued’ one since its P/E ratio of 30.58 is comparatively less than the industry average of 32.94.
During the recent financial years, the company reported an increase in both the basic business parameters such as operating revenues and net profits with the former jumping from Rs 5,733 crores during FY21-22 to Rs 7,827 crores during FY22-23, and, the latter, during the same period, soaring from Rs 563 crores to Rs 1,046 crores.
In addition to the above, the debt-to-equity ratio, one of the most tracked upon leverage metrics, has stayed at a ‘nil’ rate for the past couple of financial years.
Written by Amit Madnani
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