Synopsis:
NMDC, Godrej Properties, and the other 3 stocks have consistently maintained strong reserves and exposed themselves to minimal debt, which further increased the cash efficiencies of the firm.

In this article, we will look at five midcap companies that, with their strong cash position and low debt, not only make them resilient to any future uncertainties and self-sufficient but also empower them to fund their growth or navigate challenging times without needing to turn to outside capital.

1. NMDC

NMDC Limited is the largest producer of iron ore in India and is engaged in exploring and mining a range of minerals such as iron ore, copper, rock phosphate, limestone, magnesite, diamonds, and more. It has major operations at Bailadila in Chhattisgarh, Donimalai and Kumaraswamy in Karnataka, and a diamond mine in Panna, Madhya Pradesh. From the iron it mines, NMDC produces sponge iron and pellets, and it has also entered the renewable energy arena through solar and wind energy production.

With a market capitalization of Rs 66,167.22 crore, NMDC has a low exposure to debt, which can be understood from its low Debt to Equity ratio of only 0.14x, and has a strong reserve base of Rs 28,817 crore, which is in fact more than its FY25 revenue of Rs 23,906 crore.

2. Godrej Properties

Godrej Properties Limited, together with its subsidiaries, is involved in real estate construction, development, and related activities in India. It is engaged in developing residential, commercial, and township projects. The company was founded in 1985 and is based in Mumbai, India.

With a market capitalization of Rs 69,081.67 crore, Godrej Properties has a low exposure to debt, which can be understood from its low Debt to Equity ratio of only 0.73x, and has a strong reserve base of Rs 17,162 crore, which is in fact more than 3 times more than its FY25 revenue of Rs 4,923 crore.

3. Escorts Kubota

Escorts Kubota primarily deals with farm mechanization and also provides construction equipment. Their product lineup includes tractors, combine harvesters, and rollers, along with advanced agriculture solutions. Having a legacy of more than 80 years, it concentrates on innovation and customer-centricity, thereby making it the most trusted partner across different industries.

With a market capitalization of Rs 41,423.86 crore, Escorts Kubota has a low exposure to debt, which can be understood from its low Debt to Equity ratio of only 0.01x, and has a strong reserve base of Rs 10,255 crore, which is in fact more than its FY25 revenue of Rs 10,244 crore.

4. PI Industries

PI Industries Limited is an Indian company that manufactures and distributes agricultural chemicals and crop solutions in India and internationally. It offers products like insecticides, fungicides, herbicides, biologicals, plant nutrients, and specialty chemicals, along with R&D and custom manufacturing services. The company serves farmers, distributors, and retailers and exports its products worldwide, catering to both the agrochemical and pharma sectors.

With a market capitalization of Rs 53,501.88 crore, PI Industries has a low exposure to debt, which can be understood from its low Debt to Equity ratio of only 0.02x, and has a strong reserve base of Rs 10,142 crore, which is in fact more than its FY25 revenue of Rs 7,978 crore.

5. Gland Pharma

Gland Pharma Ltd. is a pharmaceutical company specializing in injectable formulations. The company focuses on research and development of complex drug molecules, including peptides, corticosteroids, and cytotoxic compounds. Its products cover various therapeutic areas like anti-infectives, cardiology, neurology, pain management, and more.

With a market capitalization of Rs 31,710.67 crore, Gland Pharma has a low exposure to debt, which can be understood from its low Debt to Equity ratio of only 0.03x, and has a strong reserve base of Rs 9,134 crore, which is in fact more than its FY25 revenue of Rs 5,616 crore.

In conclusion, these stocks maintain the highest cash efficiencies and have solid fundamentals, reliable business models, and strong positions in the market. This could be a great chance for long-term investors, but it’s crucial to take a close look at these businesses, understand the potential risks, and make sure they fit with your investment goals before jumping in to buy.

Written by Satyajeet Mukherjee

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 5 Fundamentally strong stocks with low debt and high cash reserves to keep an eye on appeared first on Trade Brains.