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.
Listed below are realty stocks that have delivered multibagger returns, and also have low debt-to-equity ratio:
DLF Ltd
With a market capitalization of Rs. 2,18,384 crores, the shares of DLF Ltd started Thursday’s trading session on a higher note at Rs. 894 compared to its previous close of Rs. 886.85. During the trading session, the shares hit a high of Rs. 8954.25, gaining around 1 percent and are currently trading at Rs. 888 apiece.
Looking at the company’s financial statements, the revenue increased by 13 percent from Rs. 1,348 crores during the September quarter to Rs. 1,521 crores in the December quarter. In addition, the net profits increased by 5 percent from Rs. 622 crores to Rs. 656 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 2.78 percent during FY 21-22 to 2.97 percent in FY 22-23, and the net profit margin increased from 17.45 percent during FY21-22 to 19.33 percent during FY22-23.
Moreover, the company has a low debt-to-equity ratio of 0.09 percent which means it has not relied much on debt to fund its operation.
Furthermore, the company delivered a multibagger return of 155 percent to its investors in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 2.55 lakhs now.
Man Infraconstruction Ltd
With a market capitalization of Rs. 7,974 crores, the shares of Man Infraconstruction Ltd started Thursday’s trading session on a flatter note at Rs. 217. During the trading session, the shares hit a high of Rs. 219, gaining around 1 percent and are currently trading at Rs. 219 apiece.
Looking at the company’s financial statements, the revenue increased by 13 percent from Rs. 215 crores during the September quarter to Rs. 241 crores in the December quarter. In addition, the net profits zoomed by 34 percent from Rs. 65 crores to Rs. 87 crores during the same period.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 38.91 percent during FY 21-22 to 29.65 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 33.70 percent to 33.26 percent during the same timeframe. Furthermore, the net profit margin decreased from 31.05 percent during FY 21-22 to 15.29 percent during FY 22-23.
Moreover, the company has a low debt-to-equity ratio of 0.18 percent which means it has not relied much on debt to fund its operation.
Furthermore, the company delivered a multibagger return of 166 percent to its investors in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 2.66 lakhs now.
Phoenix Mills Ltd
With a market capitalization of Rs. 50,608 crores, the shares of Phoenix Mills started Thursday’s trading session on a lower at Rs. 2,892.55. During the trading session, the shares hit a low of Rs. 2,825, making a loss of around 2 percent and are currently trading at Rs. 2,845 apiece.
Looking at the company’s financial statements, the revenue increased by 13 percent from Rs.875 crores during the September quarter to Rs. 986 crores in the December quarter. In addition, the net profits increased by 13 percent from Rs. 305 crores to Rs. 345 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 4.27 percent during FY 21-22 to 12.60 percent in FY 22-23, and the return on capital employed zoomed from 6.24 percent to 11.89 percent during the same timeframe.
Moreover, the company has a low debt-to-equity ratio of 0.51 percent which means it has not relied much on debt to fund its operation.
Furthermore, the company delivered a multibagger return of 118 percent to its investors in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 2.18 lakhs now.
Tatia Global Venture Ltd
With a market capitalization of Rs. 105 crores, the shares of Tatia Global Venture started Thursday’s trading session positively at Rs. 7.15 compared to its previous close of Rs. 7.11. During the trading session, the shares hit a low of Rs. 6.76, losing around 4 percent.
Looking at the company’s financial statements, the revenue was constant at Rs. 27 lakhs during the September and December quarter. On the other hand, the net profit increased by 36 percent from Rs. 14 lakhs during the September quarter to Rs. 19 lakhs in the December quarter.
Coming onto the important financial ratios, the return on equity showcased a transition from a negative 0.18 percent during FY21-22 to 17.10 percent in FY22-23. In addition, the return on capital employed improved from a negative 0.06 percent to a positive 16.60 percent during the same period.
Moreover, the company has a zero debt-to-equity ratio or is debt free which means it has not relied on debt to fund its operation.
Furthermore, the company delivered a multibagger return of 432 percent to its investors in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 5.32 lakhs now.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
