Debt-free stocks that are trading under ₹ 500 to add to your watchlist

A debt-free company has no debt or external borrowing. A company that is debt-free is one that is completely self-sufficient and has no outstanding loans. 

Here are three stocks that have zero debt and are priced under Rs 500. 

Avanti Feeds Ltd 

Avanti Feeds belongs to the small-cap stock, with a market capitalization of Rs 6,203 crore. On Friday, Company shares closed at Rs 455.30, down 0.55 percent from the previous close price. The stock has risen 29 percent in the previous six months and 17 percent in the year to date. 

The company has a debt-to-equity ratio of zero. Avanti Feeds’ financial metrics show a return on capital employed of 18.34 percent and a return on equity of 13.29 percent. Similarly, the operating margin is 8.69 percent, while the net profit margin is 6.14 percent. 

Avanti Feeds’ revenue has slightly decreased year on year, from Rs 1,569 crore in Q1FY23 to Rs 1,553 crore in Q1FY24. During the same timeframe, Net profit has increased by 54 percent from Rs 74 crore to Rs 114 crore. 

Avanti Feeds Ltd is an Indian company that manufactures scientifically formulated and nutritionally balanced water-stable international standard prawn feed. They are also the largest supplier of shrimp feed on the entire coast of India and other countries. 

Indraprastha Gas Ltd 

Indraprastha Gas Ltd belongs to the mid-cap stock, with a market capitalization of Rs 33,138 crore. On Friday, Company shares closed at Rs 473.40, up 0.46 percent from the previous close price. The stock has risen 12 percent in the previous six months and 9 percent in a year. 

The company has a debt-to-equity ratio of zero. Indraprastha Gas financial indicators

show that the return on capital employed at 22.40 percent and a return on equity at 20.67 percent. Similarly, the operating margin is 13.28 percent, while the net profit margin is 9.79 percent. 

Indraprastha Gas revenue has increased by 18 percent year on year, from Rs 3,193 crore in Q1FY23 to Rs 3,761 crore in Q1FY24. During the same timeframe, Net profit has increased by 4 percent from Rs 420 crore to Rs 438 crore. 

Indraprastha Gas Limited distributes compressed natural gas (CNG) and piped natural gas (PNG). The firm also provides Re-gasified Liquid Natural Gas (R-LNG) to 16 industrial customers. 

Sumitomo Chemical India Ltd 

Sumitomo Chemical India belongs to the mid-cap stock, with a market capitalization of Rs 21,263 crore. On Friday, Company shares closed at Rs 426, down 0.72 percent from the previous close price. 

The company has a debt-to-equity ratio of zero. The company’s financial indicators depict the return on capital employed at 27.07 percent and a return on equity at 21.08 percent. Similarly, the operating margin is 18.78 percent, while the net profit margin is 14.30 percent. 

Sumitomo Chemical India’s revenue has declined 26 percent year on year, from Rs 985 crore in Q1FY23 to Rs 724 crore in Q1FY24. During the same timeframe, Net profit has decreased by 55 percent from Rs 138 crore to Rs 61 crore. 

Sumitomo Chemical India Ltd. (SCIL) manufactures, imports, and markets products in the business of agrochemicals, animal nutrition, and environmental health business segments. 

Written by Omkar Chitnis

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