Having a ‘nil’ debt-to-equity ratio leads the company to have less burden of short-term interest obligations and use the same corpus for application towards other productive departments.
Listed below are two debt-free stocks which have price-to-earnings (P/E) and price-to-book value (P/BV) ratio lesser than the industry averages:
JSW Holdings Limited
The shares of JSW Holdings Limited closed today at Rs 4,548.50 apiece, slipping around 0.70 percent compared to the previous closing levels of Rs 4,580.20. It has a market capitalization of Rs 5,000 crores.
With a debt-to-equity ratio of zero, the company has consistently increased its revenue as well as net profit numbers in recent years with the former taking a shift from Rs 186 crores during FY21-22 to Rs 406 crores in FY22-23, and, the latter moving from Rs 134 crores to Rs 299 crores.
The company has a P/E ratio of 16.80 times as compared to the industry P/E of 33.20 times. Moreover, the P/BV ratio of the company stands at 0.27 times compared to the industry average of 1.16 times.
JSW Holdings is a conglomerate company with businesses in various sectors such as cement, steel, infrastructure, etc. The company’s primary business is pertaining to financing and investing.
Alembic Limited
The shares of Alembic Limited closed today at Rs 72.45 apiece, slipping around 1.30 percent compared to the previous closing levels of Rs 73.40. It has a market capitalization of Rs 1,900 crores.
With a debt-to-equity ratio of zero, the company has consistently increased its revenue as well as net profit numbers in recent years with the former taking a shift from Rs 78 crores during FY21-22 to Rs 127 crores in FY22-23, and, the latter staying at levels of 80-85 crores.
The company has a P/E ratio of 9.29 times as compared to the industry P/E of 31.50 times. Moreover, the P/BV ratio of the company stands at 0.90 times compared to the industry average of 1.32 times.
Alembic Limited is a company based in India that is involved in the business of manufacturing and marketing pharmaceutical products such as active pharmaceutical ingredients (APIs), etc.
Written by Amit Madnani
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