The debt-to-equality ratio is calculated by dividing a company’s total debt by its shareholders’ equity and it is used to measure a company’s financial leverage. One of the key factors that investors consider before investing is the debt-to-equity ratio. Having ‘zero’ debt improves performance and sets the way to meet the numbers.
Here are the three debt-free companies
Praj Industries
It is a small-cap company with a market capitalisation of Rs. 10,821 Cr. Currently, the stocks are trading 0.6% up at Rs. 589.05 on NSE.
The company’s revenue grew by 61.14% YoY from Rs. 2,222.82 Cr in FY22 to Rs. 3,581.76 Cr in FY23 and for the same period, profits increased by 59% YoY from Rs. 150.24 Cr to Rs. 239.79 Cr. The company’s debt-to-equity ratio of 0.00.
The stock has delivered 680% returns in three years, therefore making an investment of 1 lakh three years ago now would be worth 6.80 lakhs.
Praj Industries Ltd is an engineering firm. It provides wastewater treatment and utilization solutions for distilleries and breweries.
TD Power Systems
It is a small-cap company with a market capitalisation of Rs. 3,985 Cr. Currently, the company shares are trading 3.6% up at Rs. 255.20 on NSE.
The company’s revenue grew by 9.39% YoY from Rs. 797.42 Cr in FY22 to Rs. 872.3 Cr in FY23 and for the same period, profits increased by 37.32% YoY from Rs. 70.5 Cr to Rs. 96.81 Cr. The company’s debt-to-equity ratio is 0.00.
The stock has delivered 1030% returns in three years, therefore making an investment of 1 lakh three years ago now would be worth Rs. 11.30 lakhs.
TD Power Systems Ltd makes alternating current (AC) generators for steam turbines, gas turbines, hydro turbines, diesel engines, and gas and wind turbines.
Zensar technologies Ltd
It is a small-cap company with a market capitalisation of Rs. 12,736 Cr. Currently, the company stocks are trading 3.4% up at Rs. 562.30 on NSE.
The company’s revenue grew by 14.24% YoY from Rs. 4,243.8 Cr in FY22 to Rs. 4,848.2 Cr in FY23 and for the same period, net profit declined by 21% YoY from Rs. 416.3 Cr to Rs. 327.6 Cr. The company’s debt-to-equity ratio is 0.00.
The stock has delivered 190% returns in three years, therefore making an investment of 1 lakh three years ago now would be worth Rs. 2.90 lakhs.
Zensar Technologies Ltd offers a variety of IT services and sells IT-related products. Its segment includes Digital and Application Services (DAS) and Digital Foundation Services (DFS).
Written by Sheshadri N
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