Synopsis:
LMW, GM Breweries, eMudhra, RPG Life and Amal are some of the stocks that have a healthy balance sheet, having zero debt and maxing out their liabilities section covered with their reserves, making it a green flag for the company.
Here are five debt-free companies with high reserves, showcasing strong financial health across diverse sectors. They offer stability and may appeal to long-term investors seeking low-risk opportunities.
1. LMW
LMW Limited is a company that specialises in manufacturing and selling textile spinning machinery, both in India and internationally. It operates through three main segments: Textile Machinery, Machine Tool & Foundry, and the Advanced Technology Centre. In addition to textile machinery, the company also creates precision castings, machining tools, and components for the aerospace industry. Some of their key offerings include turning, milling, and turn-mill solutions.
As of the latest details, the company has zero borrowings and a high reserve of Rs 2,767 crore. The stock delivered an ROE and ROCE of 3.04 percent and 4.48 percent, respectively.
2. GM Breweries
G.M. Breweries Limited, which was founded back in 1981, crafts and sells alcoholic beverages across India. They have a variety of drinks, including Indian Made Foreign Liquor (IMFL) and country liquor, under catchy brand names like G.M. Santra, G.M. Doctor, G.M. Limbu Punch, and G.M. Dilbahar Sounf.
As of the latest details, the company has zero borrowings and a high reserve of Rs 916 crore. The stock delivered an ROE and ROCE of 14.57 percent and 18.13 percent respectively.
3. E-mudhra
eMudhra Limited specialises in providing digital trust solutions, including eSign, emSigner, and SSL certificates. They focus on identity management, certificate authority services, and managed PKI. Their offerings cater to both individuals and businesses around the world. Additionally, they provide signing solutions specifically designed for banks and bulk signing requirements.
As of the latest details, the company has zero borrowings and a high reserve of Rs 705 crore. The stock delivered an ROE and ROCE of 12.08 percent and 15.32 percent, respectively.
Also read: Smallcap stock jumps 4% after company’s net profit increases by 406% YoY
4. RPG Life Sciences
RPG Life Sciences Limited is an integrated pharmaceutical company working in the development, manufacturing, and marketing of branded formulations, generics, and synthetic APIs, both in India and globally. It offers generics and APIs across therapeutic areas consisting of immunosuppressants, cardiology, oncology, and neurology, as well as finished formulations for the treatment of nephrology, rheumatology, gastroenterology, and many other indications.
As of the latest details, the company has zero borrowings and a high reserve of Rs 517 crore. The stock delivered an ROE and ROCE of 25.53 percent and 32.80 percent, respectively.
5. Amal
Amal Ltd produces and markets bulk chemicals in India. Its offerings are sulphuric acid, oleum, sulphur dioxide, and sulphur trioxide, which find applications in dyes, fertilisers, personal care, petrochemicals, pharmaceuticals, textiles, electroplating, breweries, and food processing.
As of the latest details, the company has zero borrowings and a high reserve of Rs 87 crore. The stock delivered an ROE and ROCE of 34.65 percent and 35.95 percent, respectively.
All five companies show solid fundamentals, boasting high reserves and no debt. However, it is advised to research the companies properly before making any decisions.
Written by Satyajeet Mukherjee
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