Top 50 Best Zero Debt Companies in India (Debt Free Stocks)

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Zero debt companies in India are companies that have no outstanding debt on their balance sheet, which makes them financially stable and less risky for investors. In India, several debt-free companies have gained popularity among investors due to their strong financial position and potential for long-term growth.

Zero debt companies in India
Zero debt companies in India

In this article, we will explore the top zero debt companies in India, based on their financial performance, market trends, and expert analysis.

It’s very important to know whether a company has a lot of debt on its books, especially in these times when running a business is quite challenging and the company’s ability to pay back debt is a question.

Investors prefer companies with negligible or no debt so that they have peace of mind when investing in the top debt-free companies in India and the Highest Dividend Paying Stocks in India.

List of Zero Debt Companies in India 2024

TCSIT Consulting & Software – Large Cap4,115.7514,81,3720
InfosysIT Consulting & Software – Large Cap1,659.956,86,7750
LICInsurance – Life1,033.856,51,2850
HULPersonal Care2,418.705,66,1810
HCL TechIT Consulting & Software – Large Cap1,652.004,46,1540.03
Sun PharmaPharma – Indian1,555.003,74,1160
Maruti SuzukiAuto – Cars/UV/CV11,608.553,65,3660
Titan CompanyJewellery Retail3,752.103,34,3310
UltraTech Cem.Cement – Pan India10,121.402,92,5980.1
Coal India LtdMining/Minerals449.352,75,0730.07
Asian PaintsPaints/Varnishes2,849.152,71,6210
WiproIT Consulting & Software – Large Cap522.852,71,1990.08
Avenue SupermartSupermarkets3,876.752,52,7540
DLFReal Estate925.92,25,2290.03
Bajaj AutoAuto – 2 & 3 Wheelers8,062.952,27,6780
HALDefence Contractor3,161.752,10,9520
Jio Financial ServicNBFC – Diversified325.82,01,9710
SiemensCapital Goods – Diversified4,710.451,67,4030
LTIMindtreeIT Consulting & Software – Mid Cap5,295.551,56,0830
SBI LifeInsurance – Life1,547.301,54,4060
BELDefence Contractor206.91,50,2890
ZomatoOnline Service/Marketplace167.41,45,0370
Pidilite IndDiversified2,749.951,40,2490
Power Finance Corp.Term Lending – Power415.551,36,3770
Godrej ConsumerPersonal Care1,272.401,29,6370.01
HDFC LifeInsurance – Life592.61,26,8780.07
Tech MahindraIT Consulting & Software – Large Cap1,279.951,24,1490
Ambuja CementsCement – Pan India619.11,22,6330
CiplaPharma – Indian1,484.501,18,7530
ABB IndiaCapital Goods – Diversified5,510.851,16,3350
Tata ConsumerFMCG Food & Beverages1,203.801,14,4350.01
Adani GasGas Distribution1,036.351,14,2870.09
Eicher MotorsAuto – 2 & 3 Wheelers3,859.401,05,2270
Dr. ReddysPharma – Indian6,250.051,03,3140
Bajaj HoldingsHolding – Diversified9,052.9599,5450
Havells IndiaElectronics/Electricals1,570.3594,9800
Dabur IndiaPersonal Care539.9595,8850.03
Cadila HealthcarePharma – Indian92693,6640
Divis LabsPharma – Indian3,504.9092,4470
Shree CementsCement – North25,730.9092,5030.03
Hero MotoCorpAuto – 2 & 3 Wheelers4,580.0090,0910
Mankind PharmaPharma – Indian2,145.5086,1000
BoschAuto Ancl – Engine Parts29,129.3085,3540
United SpiritsBeverages & Distilleries1,169.5084,9000
Indian HotelsHotels & Resorts590.6583,8760.04
BHELCapital Goods – Power236.6581,9330
ICICI LombardInsurance – Non Life1,662.2080,9240
HDFC AMCAMC3,802.9580,7980
Cummins IndiaEngines2,747.1575,5690
List of Zero Debt Companies in India

The above debt-free companies in India / zero debt companies in India list definitely helps in finding some good companies where their net debt is zero.

Consider reading: Best Multibagger Stocks in India

Advantages of Investing in Zero Debt Companies in India

There are several advantages to being a zero debt company in India, including:

  1. Financial stability: Zero debt companies have no outstanding debt obligations and are able to finance their operations and investments solely through their own internal resources or equity. This gives them a strong financial foundation and makes them less vulnerable to economic downturns and financial crises.
  2. Retention of ownership: Debt-free companies are able to retain a higher degree of ownership and control over their operations, as they are not beholden to external creditors.
  3. Flexibility: Zero-debt companies have more financial flexibility, as they are not required to make debt payments or adhere to the terms and conditions of debt agreements. This allows them to make financial decisions based on the needs of their business rather than being constrained by debt obligations.
  4. Higher credit ratings: Zero debt companies in India often have higher credit ratings, as they are seen as less risky by lenders and investors. This can make it easier for them to access capital and secure financing when needed.
  5. Potential for higher returns: Debt-free companies may be able to generate higher returns for shareholders, as they are not required to use their profits to make debt payments.

Consider reading: Best Blue Chip Stocks in India

How to Find the Best Debt Free Companies

Finding the best Debt-free / Zero Debt companies in India is not easy. Although there are many companies which do not have debt on their books they are seldom the best companies to invest in.

To find the best debt-free stock to invest in, we recommend doing below:

  1. Look at their books and find out Free Cash Flow (FCF) – Only look at companies if their free cash flow is positive. If they have a negative free cash flow then it’s not good for the company.
  2. What is the Absolute Debt of the company? Find out the debt to market cap. Look for companies that have lower debt to market cap.
  3. Find out companies that have higher Return on Equity (ROE).
  4. Look for companies who have better Return on Capital Employed (ROCE).
  5. Debt-to-equity ratio: This ratio compares a company’s total debt to its total equity. A debt-to-equity ratio of zero indicates that the company has no debt and is financing its operations and investments solely through internal resources or equity.
  6. Interest coverage ratio: This ratio measures a company’s ability to pay its interest expenses on its debt. A ratio of 1 or higher indicates that the company is able to pay its interest expenses, while a ratio of less than 1 may indicate that the company is struggling to meet its debt obligations.
  7. Credit rating: Credit ratings are assigned to companies by credit rating agencies and provide an indication of the company’s creditworthiness and ability to meet its debt obligations. Companies with high credit ratings are generally considered to be financially stable and less risky investments.
  8. Financial statements: You can also review a company’s financial statements, including its balance sheet and income statement, to get a sense of its debt levels and financial position.

Having zero debt doesn’t necessarily mean the company is good. You need to be selective in picking the right company to invest in where there is future growth.

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New to investments? Consider reading: 13 safe investments with high returns in India

What are some Fundamentally Strong Debt Free Penny Stocks?

Stock NameMarket CapPriceD/E[Debt – Cash] (-)veROEROCE
Diamines &:[500120]492.155150Yes23.9731.22
Indian Ton:[523586]195.31800Yes13.416.22
Waaree Ren:[534618]925.53471.350Yes39.1751.68
Anuh Pharm:[506260]459.0391.60.01Yes15.1219.67
Axtel Indu:[523850]352.34218.10.01Yes12.5517.19
fundamentally strong debt-free penny stocks

Consider reading: Best Penny Stocks List to Buy in India

Top Zero Debt Companies in India

Stock NameCMP Rs.P/EMar Cap Rs.Cr.ROCE %Debt / Eq
Reliance Industries2747.8027.901859053.1910.140.41
Hind. Unilever2688.3062.12631640.5926.610.02
Life Insurance623.1010.86394110.64148.720.00
Asian Paints3372.3078.26323470.2835.230.12
HCL Technologies1117.0020.43303116.3928.660.07
Maruti Suzuki9884.0036.36298575.8817.690.02
Titan Company3063.0083.60271928.8925.130.79
Top 10 Zero Debt Companies in India

Zero Debt Companies in India that Pay Dividends

Stock NameCMP Rs.P/EMar Cap Rs.Cr.Div Yld %ROCE %Debt / Eq
HCL Technologies1117.7020.45303306.354.2928.660.07
Coal India235.155.10144916.518.6071.480.08
Tata Steel115.5017.80141158.663.1112.790.82
Hindustan Zinc331.0513.26139879.1722.8050.460.92
GAIL (India)109.1512.8271767.213.659.770.27
Hero Motocorp3099.1522.1361933.353.1923.570.03
Indus Towers164.6520.4244372.166.6811.450.91
General Insuranc192.405.3833754.643.7520.590.00
Oracle Fin.Serv.3819.0518.3133031.575.8935.110.01
Zero debt companies in India that pay good dividends

Final Thoughts on Zero Debt Companies in India

In conclusion, zero debt companies in India represent a beacon of financial prudence and stability in an otherwise volatile economic landscape. These organizations, having mastered the art of operating without the burden of debt, offer a unique investment opportunity for those seeking reliability and sound financial health in their portfolios.

Their ability to sustain and grow without external borrowings is not just a testament to their robust operational efficiency, but also an indicator of their strong governance and risk management practices. As investors and market enthusiasts continue to navigate the complex world of finance, zero debt companies in India stand out as a shining example of financial discipline and strategic foresight.

For those looking to invest in a future that is both secure and promising, turning attention to these debt-free giants could be a wise and lucrative decision.

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FAQs on Zero Debt Companies in India (Debt Free Stocks)

Which company has no debt in India?

In India, one prominent example of a debt-free company is Infosys, a leading information technology corporation. Achieving a debt-free status signifies strong financial health and stability, attracting investors seeking lower-risk profiles in companies. Remember that debt positions may change, making it essential to verify current financial data.

Are there companies with no debt?

Yes, there are companies with no long-term debt. Examples include TCS, Infosys, LIC, ITC and many more.

Is ITC a zero debt company?

No, ITC is not a zero-debt company. While ITC is a financially robust enterprise with diversified businesses spanning FMCG, Hotels, Paperboards, Packaging, Agri-business, and IT, it operates with a manageable level of debt, rather than being completely debt-free. The company’s strategic investments are funded through a mix of retained earnings and debt instruments.

Is TCS a zero debt company?

TCS, known as Tata Consultancy Services, operates with zero debt. This implies that the company maintains its operations without relying on borrowed funds, showcasing strong financial health and stability in the tech industry.

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