List of Zero debt companies in India in 2023

Here is a list of zero debt companies in India | How to know if a company/stock is debt free | Advantages of zero debt companies in India

Zero debt companies in India are those that have no outstanding debt obligations and are able to finance their operations and investments solely through their own internal resources or equity. These companies are considered to be financially stable and have the ability to weather economic downturns and financial crises better than those that are heavily reliant on borrowing. In this article, we will take a look at some of the debt-free companies in India.

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

Investors are preferring companies with negligible or no debt so that they have peace of mind investing in the top debt-free companies in India and best dividend paying companies.

zero debt companies in india
zero debt companies in India

List of zero debt companies in India – 2023

Here is the list of the top 100 debt free / zero debt companies in India:

COMPANYSECTOR – INDUSTRYPrice RsMarket CAP(Rs Cr.)Debt /Equity RATIO
TCSIT Consulting & Software – Large Cap3,101.951,131,0680
HULPersonal Care2,614.00626,8590
InfosysIT Consulting & Software – Large Cap1,455.15601,4370
ITCCigarettes336.65410,6680
Life Insurance Corporation Of IndiaInsurance – Life628.9398,0320
Asian PaintsPaints/Varnishes3,328.95320,1560
Avenue SupermartSupermarkets4,413.85290,1740
Maruti SuzukiAuto – Cars/UV/CV8,703.00262,5230
HCL TechIT Consulting & Software – Large Cap964.55256,7130.06
Titan Company Jewellery Retail2,592.85229,5020
Sun PharmaPharma – Indian953.9226,6290
WiproIT Consulting & Software – Large Cap410.15222,3090.09
Nestle IndiaFMCG Food & Beverages19,300.15185,6180.01
Coal India LtdMining/Minerals233.5137,5830.08
Pidilite IndDiversified2,661.95136,5620
SBI LifeInsurance – Life1,245.15126,1250
Hindustan ZincMetals – Non Ferrous – Copper/Zinc/Alloys – Products284.55115,0770.06
HDFC LifeInsurance – Life529.65112,4100.04
Bajaj AutoAuto – 2 & 3 Wheelers3,594.65103,5820
Ambuja CementsCement – Pan India506.997,7330
Tech MahindraIT Consulting & Software – Large Cap1,031.30100,0090.01
SiemensCapital Goods – Diversified2,800.4597,9260
Divis LabsPharma – Indian3,733.00100,3500
Adani Wilmar Ltd.Others746.692,4140.01
Dabur IndiaPersonal Care546.498,1180.03
Eicher MotorsAuto – 2 & 3 Wheelers3,531.3597,2040
CiplaPharma – Indian1,134.4592,3630.02
DLFReal Estate367.3588,8880.06
Godrej ConsumerPersonal Care853.6591,6850.03
Havells IndiaElectronics/Electricals1,352.5584,1590.05
SBI CardsCredit Card & Allied Services886.3584,3800
HALDefence Contractor2,476.0079,1830
L&T InfotechIT Consulting & Software – Mid Cap4,666.3080,4390.08
Shree CementsCement – North21,321.2075,8050.07
BELDefence Contractor104.6574,5960
Bajaj HoldingsHolding – Diversified6,607.0072,7530
Tata ConsumerFMCG Food & Beverages794.372,3560.02
Dr. ReddysPharma – Indian4,397.5573,4660.02
MaricoPersonal Care525.168,0210
ABB IndiaCapital Goods – Diversified3,188.8565,2850
United SpiritsBeverages & Distilleries864.862,6070
FSN E-Comm(Nykaa)Online Service/Marketplace1,284.3562,0060
Berger PaintsPaints/Varnishes615.4559,7530
Page IndustriesBranded Hosiery/Knitwear53,078.9558,2260
IRCTCTravel Agen. / Tourism Deve. / Amusement Park / Catering731.2557,5400
GAILGas Distribution87.5557,3680.09
ICICI LombardInsurance – Non Life1,160.4556,4660.03
Zomato Ltd.Online Service/Marketplace65.5554,7550
MindTreeIT Consulting & Software – Mid Cap3,302.4553,5150
Tata ElxsiIT Consulting & Software – Mid Cap8,575.9552,8680
Schaeffler India Bearings3,388.2051,2420
Hero MotoCorpAuto – 2 & 3 Wheelers2,646.1052,3880
Info EdgeOnline Service/Marketplace4,009.4050,9160
BoschAuto Ancl – Engine Parts15,945.6046,9100
PI IndustriesPesticides/Agro Chem3,067.6546,0530.03
United BreweriesBeverages & Distilleries1,737.9544,8380
Astral Poly TechPlastics – Pipes & Fittings2,249.9045,0670.01
P&GPersonal Care13,913.0045,2490
ACCCement – Pan India2,381.7544,3110
PayTMOnline Service/Marketplace688.643,7930
Cadila HealthcarePharma – Indian423.2542,9870.02
ConcorWarehousing/Supply Chain/Road Transport71043,2690.01
Delhivery Ltd.Others596.6543,0280.02
Colgate-PalmolivePersonal Care1,571.3543,5340.01
Jubilant FoodRestaurant & QSR639.241,7950.06
HDFC AMCAMC1,911.6040,3650
Abbott IndiaPharma – MNC19,134.9540,3280
MphasisIT Consulting & Software – Mid Cap2,122.0538,8940
Polycab IndiaElectronics/Electricals2,642.9539,4040
Alkem LabsPharma – Indian3,279.3539,4690
NMDCMining/Minerals132.938,0100.05
L&T TechIT Consulting & Software – Mid Cap3,599.4037,7390
Balkrishna Ind.Tyres & Tubes1,918.4537,0480.07
Vedant Fashions Ltd.Others1,465.4035,1820.08
HoneywellCapital Goods – Diversified39,983.0035,1710
MRFTyres & Tubes82,440.1535,1270.06
Gland PharmaPharma – Indian2,074.8035,1030
Gujarat GasGas Distribution495.933,7450.07
Cummins IndiaEngines1,229.1033,7050
LupinPharma – Indian723.233,7440.01
Aurobindo PharmaPharma – Indian542.531,8900.01
Petronet LNGGas Storage & Distribution204.330,5030
VoltasAir Conditioners92230,6050
Coromandel Int.Fertilisers1,012.3529,3300
Deepak NitriteChemicals – Inorganic – Others2,175.9028,7440.06
3M IndiaDiversified25,130.7027,9290
Linde IndiaIndustrial Gases3,311.8528,3800
EscortsAuto – Tractors2,132.1528,0680
Indian Railway Finance Corporation Ltd.Term Lending – Railways21.427,9010
Power Finance Corp.Term Lending – Power105.6527,7210
Motherson Sumi Wiring India Ltd.Others87.827,5370
Sona BLW Precision Forgings Ltd.Auto Ancl – Others474.1527,3860.02
Persistent SystemIT Consulting & Software – Mid Cap3,552.7525,2120.09
IGLGas Distribution384.327,3390
Zee Ent.TV Broadcasting & Software Production279.9525,7610
Max FinancialInsurance – Life769.9526,4860
AtulChemicals – Diversified9,001.7026,6790.01
OracleIT Consulting & Software – Mid Cap3,038.5525,8620
ThermaxCapital Goods – Diversified2,200.2526,1600.02
Metro Brands Ltd.Others959.4525,6930
List of zero debt companies in India

What are the Advantages of 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.

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.

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 dividend paying stocks

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New to investments? Consider reading –

 How to start investing in share market – 10 Point guide to help you make a start!

13 safe investments with high returns in India

What are some fundamentally strong debt free penny stocks?

Here is a list of fundamentally strong debt-free penny stocks:

SLStock NameMarket CapPriceD/E[Debt – Cash] (-)veROEROCE
1GUJTHEMIS:[506879]921.126300Yes46.9162.83
2RBL:[532987]561.417300Yes12.8316.25
3GANDHITUBE:[513108]560.214610Yes26.8133.2
4TANFACIND:[506854]872.818650Yes30.6941.02
5Diamines &:[500120]492.155150Yes23.9731.22
6AMBIKCO:[531978]923.271612.70Yes25.2333.22
7DLINKINDIA:[533146]664.83187.250Yes16.7422.59
8INDRAMEDCO:[532150]571.5862.20Yes19.524.14
9Indian Ton:[523586]195.31800Yes13.416.22
10CONTROLPR:[522295]708.8432.30Yes16.9619.19
11ELDEHSG:[523329]570.31590.60Yes17.5123.15
12ADVANIHOTR:[523269]397.7285.70Yes34.7441.33
13Waaree Ren:[534618]925.53471.350Yes39.1751.68
14ANDHRAPET:[500012]790.6692.950.02Yes38.3741.79
15PERMAGNET:[504132]435.08500.050.03Yes22.4829.64
16ASALCBR:[507526]890.4492.50.01Yes20.4826.96
17TNPETRO:[500777]919.96102.250.06Yes20.325.56
18CHEVIOT:[526817]737.671229.950.01Yes14.3517.97
19TVSELECT:[532513]484.91257.50.04Yes16.2922.42
20Anuh Pharm:[506260]459.0391.60.01Yes15.1219.67
21Axtel Indu:[523850]352.34218.10.01Yes12.5517.19
fundamentally strong debt-free penny stocks

Which are the top debt-free companies in India?

The top 10 debt-free companies in India are as below:

  • Maruti Suzuki
  • Titan Company
  • TCS
  • Infosys
  • HUL
  • Wipro
  • Asian Paints
  • HCL Tech
  • ITC
  • Avenue Supermart

Which are debt-free companies that pay dividends?

Zero debt companies in India that give good dividends are:

  • Marico
  • Coal India Ltd
  • Hindustan Zinc
  • ITC
  • GAIL
  • Bharti Infratel
  • Bajaj Auto
  • Hero MotoCorp
  • TCS
  • Nestle India

FAQs on Zero debt companies / Debt free Stocks

  1. Is Zero Debt good for a company?

    Having Debt free or zero debt is good for a company because it can avoid interest costs which can impact its balance sheets. But it's not applicable to all companies as some companies which are in the finance business take debt to loan it further to make money. Also, some companies take loans to fuel their growth.
    You need to check why a company is taking debt and how they are able to pay back its debt.

  2. What are zero debt companies?

    Zero-debt companies are those that have no outstanding debt obligations and are able to finance their operations and investments solely through their own internal resources or equity. These companies are considered to be financially stable and have the ability to weather economic downturns and financial crises better than those that are heavily reliant on borrowing.

  3. What are the advantages of being a zero debt company?

    There are several advantages to being a zero-debt company, including financial stability, retention of ownership, flexibility, higher credit ratings, and potential for higher returns.

  4. Why should you invest in zero debt companies in India?

    There are several reasons why you may want to consider investing in zero-debt companies in India, including financial stability, the potential for higher returns, lower risk, and diversification.

  5. How do you find out if a company has zero debt?

    There are a few key financial ratios and metrics that can help you determine if a company has zero debt, including the debt-to-equity ratio, interest coverage ratio, credit rating, and financial statements.

  6. Are all zero-debt companies good investments?

    Being a zero-debt company is generally seen as a positive sign of financial stability and low risk. However, it is important to carefully research and evaluate the overall financial position and risk profile of any company before making an investment decision.

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