For long-term investors: Check these debt-light five major stocks with superior returns
If a stock is fundamentally sound, has a dependable management and is active in an industry which has a future, it is for long-term keeps. Read on for five such stocks which are very light on debt.
Kolkata: Sound stocks that are guided by a dependable management in industries that have a future are for long-term investment. The following five are such stocks, spiced up with a cheery of a very small debt on top. Let's have a look at these which are in diverse fields such as power and defense, electronics and engineering.
BEL (Bharat Electronics Ltd) returns
Bharat Electronics (BEL), which is a prominent player in defense, is a profit generator. This is a PSU which is active in the field of electronics systems, which find a lot of use in the defense sector and civilian purposes. BEL can boast of strong fundamentals. The debt-to-equity ratio of BEL is close to zero, a rare example, though the debt of the company stands at Rs 61.23 crore. BEL's market cap in about Rs 301,60.14 crore.
BEL was trading at Rs 404.20, down Rs 6.10 (or 1.49%) on October 8. Its shares have gained close to 11% in the past one month. It has delivered returns of 1207% in the past five years.
Mazagon Dock Shipbuilders returns
Mazagon Dock Shipbuilders builds ships and submarines and is a player in both the domestic and international markets. The total debt of Mazagon Dock Shipbuilders
is a mere Rs 20.33 crore. The market cap of Mazagon Dock Shipbuilders is Rs 1,16,246.05 crore. The debt-equity ratio of this defense company is just about zero.
The Mazagon Dock Shipbuilders stock was trading at Rs 2820.30 on October 8, down Rs 57.40 (or 1.99%). Its shares have risen nearly 8% in a month. Over the past five years, the stock as appreciated 3256%.
Hindustan Aeronautics Ltd (HAL) returns
Hindustan Aeronautics, popularly known as HAL, is the leading aerospace and defense company of the country. It has expertise in manufacturing aircraft, helicopters, and different categories of engines. The company has a market cap of Rs 325,887.37 crore and a debt of only Rs 51.44 crore. Therefore, the debt-equity ratio is almost zero.
The stock of HAL was trading at Rs 4,778.00, down Rs 59.60 (or 1.23%) on October 8. It has appreciated by abouot 10% in a month. HAL shares have delivered returns as high as 1116% in the past five years.
Dixon Technologies returns
Dixon Technologies is a major manufacturer of consumer electronics and home appliances and is a contract manufacturer for prominent brands. It boasts of a market cap of Rs 100,433 crore. The debt-equity ratio of this company is as low as 0.07 at the end of the last financial year.
The Dixon Technologies stock was trading at Rs 17,006.00, down Rs 226.00 (or 1.31%) on October 8. The stock generated a return of more than 901% in the past five years.
Cummins India returns
Cummins India is one of the major engineering companies in the country which is engaged in designing and manufacturing engines, generators, and related technologies. The total debt of this major company is Rs 296.6 crore, which has given a virtually debt free status with the debt equity ratio near zero. The market capitalization of the company is Rs 108,855.05 crore.
The Cummins India share was trading at Rs 3,882.50, down Rs 84.90 (or 2.14%) on October 8. The stock has declined in the past one month but in the past five years it has generated returns of 798.52%.
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