Best Debt Free Stocks Under Rs 500 2024 Add To Watchlist

A debt-free company is always seen as a positive prospect because it has less risk of bankruptcy and management is confident. In this article, we will look at some of the best debt-free stocks under Rs 500. Read on to find out about this.

Best Debt Free Stock Under Rs 500 #1: ITC Ltd

Established in 1910, ITC Limited is a conglomerate engaged in a diverse range of industries including fast-moving consumer goods (FMCG) such as food, personal care products, tobacco, educational and stationery products, incense and safety matches. ITC is also engaged in hotels, cardboard and packaging, agribusiness, and IT businesses.

ITC’s consumer goods business includes Aashirvaad, Sunfeast, Yippee!, Bingo!, B Natural, ITC Master Chef, Fabelle, Sunbeam, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep, Aim, etc.

According to the company’s financial statements, operating revenue increased 17% to KRW 1.1 trillion. 60,645 crore in FY22 and Rs 7,091.9 billion in FY23. Net profit was Rs 19,477 crore, up 26% from Rs 15,503 crore in FY22. The three-year average RoE and RoCE are 25% and 33.6%, respectively. The three-year net profit margin was 27.92%.

The company’s promoters hold 0% of the shares as it is professionally run, while FIIs hold 43.26% of the shares as of December quarter FY24. The FII ratio has increased significantly compared to 11.99% in FY22.

Best Debt Free Stock Under Rs 500 #2: Coal India Ltd

Established by the Government of India in November 1975, Coal India Limited (CIL) is a state-owned coal mining Maharatna Company. It is the world’s largest coal producer, producing 79 million metric tons since its inception.

The Raw Coal Mines Act of 1971 and the Coal Mines Ordinance of 1973 allowed the government to acquire 226 raw coal mines and 711 non-coking coal mines, leading to the creation of CIL. Coal India produced 703.2 MT of coal in FY’23, registering a growth of 13% over FY’22. Production surpassed 700 MT for the first time on March 30, a day ahead of the 2022-23 deadline.

According to the company’s financial statements, operating revenue increased 27% to KRW 1.1 trillion. 1,00,563 crore in FY22 to Rs 1,27,627 crore in FY23. Net profit reached 140 million won. It increased by 61% to 28.125 billion won. In fiscal year 22, it is $1,737.8 billion. The significant profit growth can be attributed to a surge in sales coupled with an increase in average realization per tonne.

The three-year average RoE and RoCE are 46% and 22%, respectively. This ratio indicates efficient utilization of resources and good returns for shareholders. As of December quarter FY24, the company’s promoters hold 63.13% of the shares and FIIs hold 8.59% of the shares. The promoters’ stake has remained constant over the past four years.

Best Debt-Free Stock Under Rs 500 #3: Wipro Ltd

(Founded in 1945 by MrAzimPremji, WiproLimited is a leading technology services and consulting firm focused on building innovative solutions that address the complex digital transformation needs of our clients.

Wipro offers a variety of services such as consulting, cybersecurity, data analytics, business processes, and artificial intelligence. We are present in 65 countries, have over 1400 active global customers and employ over 2,50,000 people across the continent.

Wipro functions in two business segments:

• idea (Integrated Digital, Engineering, and Application Services): Includes service lines such as Domain & Consulting, Applications & Data, Wipro Engineering, and Wipro Digital.
• Icore (Cloud Infrastructure, Digital Operations, Risk and Enterprise Cybersecurity Services) includes Integrated Cloud Infrastructure (CIS), Digital Operations (DOP), and Risk and Enterprise Cybersecurity Services (CRS).

The company has recently acquired several IT companies around the world, including CAPCO, Edgile, Rizing, LeanSwift, and Convergence Acceleration Solutions (CAS).

Operating revenue rose 14% to $110 million, according to the company’s financial statements. 79,093 Cr in FY22 to Rs. 90,488 Cr. In FY23. Net profit reached 140 million won. It decreased from Rs 1136.6 billion. In fiscal year 22, it is $1224.3 billion.

The three-year average RoE and RoCE are 18.4% and 20.3%, respectively. This ratio indicates efficient utilization of resources and provides good returns to shareholders. Net profit margin decreased from 15.42% to 12.54%.

As of December quarter FY24, the company’s promoters hold 72.92% of the shares and FIIs hold 6.70% of the shares. Promoter’s shareholding decreased by 1.12% compared to FY20.

Best Debt-Free Stock Under Rs 500 #4: Fortis Healthcare

Founded in 1996, Fortis Healthcare is an Indian healthcare organization with 28 healthcare facilities, over 4,500 operational beds and over 400 diagnostic centres. Fortis has over 3700 touch points, including over 430 physicians and over 4150 laboratory technicians. They are located in India, United Arab Emirates (UAE), Nepal and Sri Lanka.

According to the company’s financial statements, operating revenue increased 10% to KRW 1 billion. 5718 crore in FY22 to Rs 629.8 billion in FY23. Net profit reached 140 million won. 632.98 crore, a 20% decrease from Rs. In fiscal year 22, it is $7899.5 billion. Last year’s huge unusual profits led to a decline in net profit.

After removing the effects of exceptional items, net profit increased by 17%. The three-year average RoE and RoCE are 4.39% and 7.38%, respectively. The three-year average net profit margin was only 6.84%.

As of December quarter of FY24, the company’s promoters hold 31.17% of the shares and FIIs hold 23.72% of the shares. The promoter’s stake has remained constant over the past few years.

#5 Best Debt-Free Stocks Under Rs 500: Nippon Life India Asset Management Ltd

Nippon India Mutual Fund was registered as an Asset Management Company (AMC) with the Securities and Exchange Board of India (SEBI) on June 30, 1995. Nippon India Mutual Fund (NIMF) was previously known as Reliance Mutual Fund. With effect from September 28, 2019, the name of the mutual fund was changed from Reliance Mutual Fund to Nippon India Mutual Fund.

NIMF was established to initiate various schemes to issue units to the public to contribute to the capital market and provide investment opportunities to investors. Sponsor Nippon Life Insurance Company Japan (NLI) holds 73.7% of the paid-up capital as of March 31, 2023.

The company’s product line includes mutual funds with active and passive schemes across equity, hybrid, debt, liquid and commodity categories. Managed accounts, including Alternative Investment Funds (AIFs); Portfolio Management Services (PMS); pension fund; Foreign business and advisory obligations.

As of March 31, 2023, Nippon AMC had 270 locations and folios valued at $1.96 billion, catering to 1.35 billion unique investors (market share: 36%). Total assets under management (AUM) is ₹3,62,981 crore and mutual fund AUM is ₹2,86,873 crore.

Operating revenue rose 3.3% to KRW 130 million, according to the company’s financial statements. 1307 crore in FY22 to Rs 135 billion in FY23. Net profit reached 140 million won. It decreased by 3% to 72.3 billion won. $744 million in fiscal year 22. The three-year average RoE and RoCE are 22.3% and 29.3%, respectively. The three-year average net profit margin was only 58%.

As of December quarter of FY24, the company’s promoters hold 73.10% of the shares and FIIs hold 5.54% of the shares. Promoter’s stake has decreased by about 2% compared to FY20.

Other Best Debt Free Stocks Under 500

conclusion

Concluding this article titled “Best Debt Free Stocks Under Rs 500”, we have learned about their business and its basic principles. Before investing, detailed analysis is required to determine the nature and suitability of risk and return.

Written by Ashish Agarwal

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