At the time of examining the company’s finances, there are several aspects which come into picture and play diverse roles to help understand the company’s strength. Part on debt appears to be a crucial area. The corporation can be termed as being a debt-free company if it has no debt listed on balance sheet. Debt has significant influence on the company’s current performance and expected future growth. Simply put, a debt-free firm in India will be categorised as one which has no debt or any sort of external borrowing. The corporation without any outstanding debts is considered as an autonomous one, totally self-sufficient, and debt-free. Therefore, while searching “debt free stocks to buy,” it is important to make sure that the company doesn’t have debt at the time of investment and it has no plans to raise debt in the near future.
Making investments in zero-debt stocks can be considered as a fruitful strategy for several investors as it often points to lower risk & financial stability. However, it’s important to consider a range of factors before making investment decisions in such stocks.
Investors are required to look at profitability, cash flow, and several other financial metrics to make sure that the company is in good shape. There are industries which need higher levels of debt to finance their operations, so zero-debt might not always be considered as a positive sign. Investors are required to evaluate quality and track record of the company’s management. Understanding the company’s business model and its competitive advantages will make sure that investors gets healthy returns in the long-term.
If you are looking for some of the best debt free stocks to buy, this article has come to your rescue. By the end of this article, you will be able to understand best debt free stocks to buy under the sum of INR100 in India.
1. Tokyo Finance
Tokyo Finance Limited was incorporated as public limited company in November 1994. The company was listed on the Bombay Stock Exchange to finance working capital requirements. It applied to RBI for registration as NBFC. The company business operations are to advance, deposit or lend money, securities and properties to or with any company, body corporate, firm with or without securities. Therefore, the company provides seed capital, venture capital and loan capital.
In 1Q24, the company’s net operating revenue came in at ¥20,615 million, which exhibits a rise of ~29% quarter-over-quarter and ~17% year-over-year. Operating profit of the company came in at ¥3,494 million, a whopping increase of ~393% year-over-year.
2. Anand Projects Limited
Anand Projects Limited is engaged in business of Engineering, Procurement and Construction related activities and these are project-specific.
The total income of the company for FY23 came in at INR91.98 lakh in comparison to INR526.49 lakh seen in previous year. NPAT of the company was INR409.67 lakh against net loss of INR6,021.72 lakh in the previous year.
Because of COVID-19 pandemic, India’s economy was significantly impacted. However, the company is optimistic about its improvement in order book substantially by procuring further contracts and orders in upcoming years. It has implemented 1980 MW Super Critical Thermal Power Project at Lalitpur, Distt.-Jhansi, in the State of UP and it received strong response. It continues to execute Engineering, Procurement and Construction (EPC) services in power sector at Distt.- Lalitpur (UP).
Focus of the company is on quality of portfolio, profitability and liquidity which should act as principal growth enablers.
3. Adinath Exim Resources Limited
The company was incorporated as Adinath Exim Resources Ltd. on 20th January 1995. Currently, the company is a NBFC Company which is registered with the Reserve Bank of India and is focused on carrying on business of non-banking financial institution. The carries on and undertakes the business of finance Company, funding in all types of lease operations, and carry on the business of exploration and production of coal bed methane and Oil & Gas.
The company’s revenues from operations grew to INR99.73 lakhs in FY23 from INR97.48 lakhs in FY22, exhibiting a growth of ~2.31% in comparison to previous year, impacting to the profit of INR68.11 lakhs in current fiscal year in comparison to profit of INR34.93 lakhs in FY22. The current year seems to be strong in terms of market capitalization and the company’s Directors expect strong results for FY24.
NBFCs continue to emerge as an alternative to mainstream banking. They have been categorised as an integral part of Indian Financial System as they contribute significantly to Government’s agenda of financial inclusion. NBFCs in India saw strong growth in recent years. Given favourable industry dynamics, Adinath Exim Resources Limited should be able to capitalise on the opportunities available due to its market share and liquidity profile.
4. DRA Consultants Limited
DRA Consultants Limited gives wide range of advisory services in Urban and Industrial sector. It has specialized expertise in 3-R (Reduce-Recycle-Reuse), 3-P (Public–Partnership) & Performance audits in addition to other fortes.
During FY23, the company’s revenue from operations came in at INR15.04 crores as against turnover from operations of INR15.12 crores in the previous year. Net profit for the period was INR1.73 crores as against INR1.65 crores in the previous year.
The services sector is the dominant sector in the country’s Gross Domestic Product (GDP), and has attracted strong foreign investment flows. This sector has contributed significantly to exports and provided large-scale employment. Consultancy services are emerging as the fastest growing service segments in India. Given the company’s quality technical staff, innovative consulting services, and international projects, DRA Consultants Limited should be able to increase its market share. As a result, its revenues are expected to increase in upcoming years.
Conclusion
While above are some of the best debt free stocks to buy under INR100 in India, there are several other stocks which hold potential. If investors want to consider some of the best debt free stocks to buy, they are required to consider long-term and short-term goals of the company and formulate the exit strategy.
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