Synopsis:
Debt-free companies such as MOIL, Rajoo, Amal, ZF Commercial and LIC with high Piotroski scores demonstrate strong financial health and growth, making them appealing to investors.
Debt-free stocks with high Piotroski scores are often considered strong investment candidates, as they combine financial stability with robust fundamental performance. Being debt-free ensures the company has minimal leverage risk and greater financial flexibility, while a high Piotroski score (out of 9) indicates solid profitability, liquidity, and operating efficiency. Together, these factors highlight companies with sound balance sheets, consistent cash flows, and the potential to deliver sustainable long-term returns.
What is the Piotroski Score and why is it important?
The Piotroski Score, or Piotroski F-Score, is a measure of a company’s financial health developed by Stanford professor Joseph Piotroski. It evaluates firms on a scale of 0 to 9 across nine accounting-based criteria, grouped into profitability, leverage/liquidity, and operational efficiency. A score of 7–9 signals strong fundamentals, while 0–3 suggests financial weakness.
Investors use this score to differentiate high-quality companies from weaker ones. In sectors like defense, where businesses depend on long-term contracts, solid financial footing and operational efficiency are crucial for sustained growth.
Below are list of debt free stock with high piotroski score
1. MOIL Ltd
MOIL Limited, a miniratna state-owned company under the Government of India, is the country’s largest producer of manganese ore, supplying about 53 percent of India’s total production. Focused on maintaining domestic leadership, it aims to expand globally through modern technology and strategic partnerships. Its core business is the mining of manganese ore, a critical material for producing strong steel.
MOIL Ltd has a market value of Rs. 7,241.02 crore and is closed at Rs. 355.85 on Friday. The company’s P/E stands at 25.8x, which is higher than the industry P/E of 21.4x. The ROCE of 18.8 percent and ROE of 14.7 percent, indicates the company’s strong financial position.
MOIL Ltd has a piotroski score of 8, and the company operates with a debt-free balance sheet, indicating that it has no outstanding borrowings and is financially independent.
In Q1FY26, it reported revenue of Rs. 348 crore, down 29.4 percent YoY from Rs. 493 crore and 19.6 percent QoQ from Rs. 433 crore, while net profit fell to Rs. 52 crore, declining 65.8 percent YoY from Rs. 152 crore and 55.2 percent QoQ from Rs. 116 crore, reflecting significant pressure on both topline and bottomline performance.
2. Rajoo Engineers Ltd
Rajoo Engineers Limited, established in 1986 and promoted by Mr. C.N. Doshi and Mr. R.N. Doshi, is a Gujarat-based manufacturer of plastic extrusion machinery. The company specializes in designing and producing machines while providing customized solutions tailored to client needs, with its headquarters located in Gujarat.
Rajoo Engineers Ltd has a market value of Rs. 1,711.71 crore and closed at Rs. 95.80 on Friday. The company’s P/E stands at 35.9x, which is lower than the industry P/E of 37.2x. The ROCE of 32.6 percent and ROE of 26.1 percent highlights the company’s financial position. Rajoo Engineers Ltd has a piotroski score of 8, and the company does not carry any debt on its books, highlighting a healthy capital structure and low financial risk.
In Q1FY26, it reported revenue of Rs. 85 cr, up 66.7 percent YoY from Rs. 51 cr in Q1FY25 but down 5.6 percent QoQ from Rs. 90 cr in Q4FY25. Profit rose sharply to Rs. 15 cr, a 200 percent YoY increase from Rs. 5 cr, while remaining flat QoQ compared to Rs. 15 cr in Q4FY25.
3. Amal Ltd
Amal Ltd, incorporated in 1974, is a chemical company that produces bulk chemicals such as Sulphuric Acid and Oleum for industries like pharmaceuticals and textiles. Committed to quality, it aims to be the preferred partner for its customers by offering reliable products and services.
Amal Ltd has a market value of Rs. 1,078.95 crore and closed at Rs. 872.75 on Friday. The company’s P/E stands at 28.2x, which is lower than the industry P/E of 33.2x. With ROE of 35 percent and ROCE of 36.3 percent highlights the company’s financial position. Amal Ltd has a piotroski score of 8, and the company operates entirely debt-free, showcasing prudent financial management and efficient use of internal resources.
In Q1FY26, the company reported revenue of Rs. 47.31 cr, up 131 percent YoY from Rs. 20.51 cr in Q1FY25 and 21 percent QoQ from Rs. 38.96 cr in Q4FY25. Profit rose sharply to Rs. 9.40 cr, marking a 1,988 percent YoY increase from Rs. 0.45 cr and a 39 percent QoQ growth from Rs. 6.78 cr in the previous quarter, reflecting strong operational performance and improved margins.
4. Life Insurance Corporation of India Ltd
Life Insurance Corporation (LIC) is India’s largest insurance provider, holding over 66 percent of the new business premium market. It offers a range of products including participating policies, unit-linked plans, savings, term, health, and pension products.
LIC aims to provide life coverage combined with investment returns and envision becoming a globally competitive financial conglomerate that contributes to society and represents national pride.
Life Insurance Corporation of India Ltd has a market value of Rs. 5,65,612.92 crore and closed at Rs. 894.25 on Friday. The company’s P/E stands at 11.6x, which is lower than the industry P/E of 74.3x. It has an ROE of 45.7 percent and ROCE of 53.1, indicating the company’s financial position.
Life Insurance Corporation of India Ltd has a piotroski score of 7, and with no outstanding debt, the company demonstrates robust financial stability and self-sufficiency in funding its operations.
In Q1FY26, the company posted revenue of Rs. 2,24,671 cr, up 6 percent YoY from Rs. 2,11,952 cr in Q1FY25 but down 8 percent QoQ from Rs. 2,43,134 cr in Q4FY25. Profit for the quarter stood at Rs. 10,955 cr, reflecting a modest 4 percent YoY increase from Rs. 10,527 cr, and a 42 percent decline QoQ from Rs. 19,039 cr, indicating seasonal or operational impacts on quarterly earnings.
5. ZF Commercial Vehicle Control System India Ltd
ZF Commercial Vehicle Control Systems India, operating under the ZF WABCO brand, is a market leader in India for advanced and conventional braking systems, air-assisted technologies, and related services, including software development. Headquartered in Chennai, the company emphasizes safety, accident-free driving, and sustainable transportation solutions.
ZF Commercial Vehicle Control System India Ltd has a market value of Rs. 25,093.92 crore and closed at Rs. 13,229.90 on Friday. The company’s P/E stands at 52.3x, which is higher than the industry P/E of 28.7x. IIt has an ROE of 15.1 percent and ROCE of 20.2, indicating the company’s financial position.
ZF Commercial Vehicle Control System India Ltd has a piotroski score of 7, and Being free from debt obligations, the company is well-positioned to leverage its cash flows for growth and expansion.
In Q1FY26, the company posted revenue of Rs. 963 cr, up 2.7 percent YoY from Rs. 938 cr in Q1FY25 but down 4 percent QoQ from Rs. 1,003 cr in Q4FY25. Profit stood at Rs. 120 cr, rising 21 percent YoY from Rs. 99 cr, yet slightly declined 4 percent QoQ from Rs. 125 cr, indicating stable top-line performance with moderate margin pressure.
Written by Akshay Sanghavi
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