Having zero debt or very little debt can grant a company financial stability in the long term. Debt can help to fuel growth and offer tax advantages, but it also carries risks like potential insolvency and financial strain. Only a small handful of public companies today have zero or near-zero debt.
The Promoter holding is the percentage of a company’s shares owned by its Promoters. Promoter holding is an essential factor to consider when investing in a company because when Promoters hold a significant percentage of a company’s shares, it shows their confidence in its prospects and growth.
Listed below are three debt-free stocks that have Promoter holding of up to 85 percent:
Vinati Organics Ltd
With a market capitalization of Rs. 17,749 crores, the shares of Vinati Organics Ltd started Thursday’s trading session on a flatter note at Rs. 1,729.50. The shares hit a high of Rs. 1,737 making a gain of around 1 percent and currently trading at Rs. 1,729 apiece.
Looking at the financial statement, the revenue increased marginally by 4 percent from Rs. 431 crores during the June quarter to Rs. 448 crores in the September quarter. In addition, the net profit increased by 1 percent from Rs. 83 crores to Rs. 84 crores during the same timeframe.
Coming onto the important ratios, the company has a debt-to-equity ratio of ‘zero’ which means that the business hasn’t relied on borrowing to finance operations. Furthermore, the return on equity (RoE) was at 22.6 percent during FY 22-23 and the return on capital employed was recorded (RoCE) at 30.4 percent during the same period.
According to the latest shareholding pattern, Promoters have a huge holding of 74.06 percent in the company. Moreover, the FIIs hold 4.64 percent shares, DIIs have an 8.18 percent stake, and the remaining 13.12 percent are with the Retail Investors.
Clean Science Technology Ltd
With a market capitalization of Rs. 14,272 crores, the shares of Clean Science Ltd started Friday’s trading session on a positive note at Rs. 1,350 compared to its previous close at Rs. 1,344. The shares hit a high of Rs. 1,352 making a gain of around 1 percent and currently trading at Rs. 1,343 apiece.
Looking at the financial statement, the revenue decreased marginally by 4 percent from Rs. 188 crores during the June quarter to Rs. 181 crores in the September quarter. In addition, the net profit decreased by 12 percent from Rs. 59 crores to Rs. 52 crores during the same timeframe.
Coming onto the important ratios, the company has a debt-to-equity ratio of ‘zero’ which means that the business hasn’t relied on borrowing to finance operations. Furthermore, the return on equity (RoE) was at 33.2 percent during FY 22-23 and the return on capital employed was recorded (RoCE) at 42.5 percent during the same period.
According to the latest shareholding pattern, Promoters have a huge holding of 74.98 percent in the company. Moreover, the FIIs hold 6.01 percent shares, DIIs have a 5.23 percent stake, and the remaining 13.79 percent shares are with the Retail Investors.
Mazagon Dock Shipbuilders Ltd
With a market capitalization of Rs. 41,128 crores, the shares of Mazagon Dock Shipbuilders Ltd started Friday’s trading session on a positive note at Rs. 2,015 compared to its previous close at Rs. 2,009. The shares hit a high of Rs. 2,022 making a gain of around 2 percent and currently trading at Rs. 1,997 apiece.
Looking at the financial statement, the revenue decreased by 15 percent from Rs. 2,173 crores during the June quarter to Rs. 1,828 crores in the September quarter. On a contrasting note, the net profit increased by 6 percent from Rs. 314 crores to Rs. 333 crores during the same timeframe.
Coming onto the important ratios, the company has a debt-to-equity ratio of ‘zero’ which means that the business hasn’t relied on borrowing to finance operations. Furthermore, the return on equity (RoE) was at 38.2 percent during FY 22-23 and the return on capital employed was recorded (RoCE) at 28.6 percent during the same period.
According to the latest shareholding pattern, Promoters or the Government of India have a huge holding of 84.83 percent in the company. Moreover, the FIIs hold 3.69 percent shares, DIIs have a 0.39 percent stake, and the remaining 11.10 percent shares are with the Retail Investors.
Written By Vaibhav Patil
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