A Complete Guide on How to find Debt Free companies in India using Trade Brains Screener: Debt is a crucial factor to check before investing in any company. While zero debt on a company validates its financial health, on the other hand, a heavy debt on the company can be taken as a sign of troublesome company and to stay away from it.
A low debt company can enjoy a higher profit margin and higher solvency. On the contrary, high debt companies have to pay high interest and hence have a higher cost of capital. Overall, huge debt restricts a company from expanding and decreases profits.
A few of the top debt free companies in India are TCS, Infosys, Maruti Suzuki, ITC, Hero motocorp, Titan company, etc.
In this article, we’re going to explain how you can find debt free companies in India using the Trade Brains Screener tool. Moreover, you will be able to learn the strategies and find debt free stocks within minutes by following the step-by-step guide discussed here.
In addition, we have also added a list of top debt-free companies in India in the last section of this post for your quick reference. Once you have this list of debt free companies, you can further analyze them to check the other financial and economic health before investing. Anyways, before we start, here is what you need to know first before we start:
What is Debt to Equity Ratio?
The debt-to-equity ratio measures the relationship between the amount of capital that has been borrowed (i.e. debt) and the amount of capital contributed by shareholders (i.e. equity).
Become A Better Stock Investor
Thousands of stock market investors just like you are using Trade Brains Portal daily to perform a complete fundamental analysis of stocks. Click here to sign up for Trade Brains Portal and start picking winning stocks.
Debt to Equity Ratio =(Total Liabilities)/(Total Shareholder Equity)
Generally, as a firm’s debt-to-equity ratio increases, it becomes riskier. Companies with zero debt to equity mean that they don’t have any debt and manage the company on their equity and reserves & surplus smoothly. They don’t have any pressures of liabilities.
A lower debt-to-equity number means that a company is using less leverage and has a stronger equity position. As a thumb rule, invest in companies with debt to equity ratio less than 0.5 as it means that the debts are very less than the equity. This tells us that these are very well-managed companies. Moreover, companies with the debt-to-equity ratio of more than 1 are risky and should be considered carefully before investing.
How to find Debt Free companies in India using Trade Brains Screener?
Here is exactly what you need to do to find the list of debt free companies in India using the Trade Brains Screener website:
1. Go to the Trade Brains Screener.
2. Login to the portal using your email or Google account.
3. In the Screener Filters, Select the following filter
Debt to Equity = 0
5. Run the filter by clicking on ‘Run Filter’
6. You will get the list of all the debt-free companies in India.
Further, You can also customize this search.
For example, if you want to find the large-cap companies (with market capitalization > 50,000 crores) and debt to equity ratio less than 0.5, you can write the following in query builder:
Debt to equity < 0.5 AND
Market capitalization > 50000
This will give you the list of all the extremely large-cap companies with Debt to Equity ratio of less than 0.5.
Note: You can also use various other financial ratios like PE, P to BV, ROE, ROCE, etc in the same query builder to filter companies. We’ll discuss this in another blog post.
List of Large cap Debt Free companies in India
Here is the list of the top debt free stocks in India based on the market cap found using the filters discussed above:
|Company||Industry||Market Cap (Rs Cr)||Debt To Equity Ratio|
|Tata Consultancy Services Ltd.||IT - Software||1163018.74||0|
|Infosys Ltd.||IT - Software||598604.1||0|
|Hindustan Unilever Ltd.||Household & Personal Products||545762.5||0|
|Bajaj Finserv Ltd.||Finance - Investment||186390.53||0|
|HDFC Life Insurance Co Ltd.||Insurance||135178.68||0|
|Pidilite Industries Ltd.||Chemicals||104783.77||0|
|Tech Mahindra Ltd.||IT - Software||99396.84||0|
|SBI Life Insurance Company Ltd.||Insurance||97750.7||0|
|Coal India Ltd.||Mining & Minerals||90499.67||0|
|ICICI Prudential Life Insurance Company Ltd.||Insurance||78464.87||0|
|Siemens Ltd.||Electric Equipment||72513.21||0|
|Eicher Motors Ltd.||Automobile Two & Three Wheelers||72121.23||0|
|Larsen & Toubro Infotech Ltd.||IT - Software||68680.72||0|
|HDFC Asset Management Company Ltd.||Finance - Asset Management||63295.55||0|
|Hero MotoCorp Ltd.||Automobile Two & Three Wheelers||59754.16||0|
That’s it for this post on how to find debt free stocks in India using Trade Brains Portal. Wasn’t it simple? I hope this article was useful to you. Please comment below if you have any queries. Have a great day and Happy Investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting