Best Debt-Free Stocks in October 2024 Based on 5Y CAGR

In the ever-evolving landscape of the stock market, the search for decent investment opportunities can be daunting. One strategy that has gained traction among investors is focusing on debt-free stocks. This approach not only aligns with a conservative investment philosophy but also offers several advantages that can lead to long-term financial success. In this blog, we’ll explore the best debt-free stocks based on 5Y CAGR.

Best Debt-Free Stocks in October 2024 – Based on 5Y CAGR

Note: The debt-free stocks list has been selected and sorted based on 5Y CAGR as of October 14, 2024

Overview of 5 Debt-Free Stocks 

• Tata Investment Corporation Ltd: Tata Investment Corporation Ltd is mainly engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds etc. of companies in a wide range of industries. The company reported a total income of ₹143.19 crores for the period ending June 30, 2024, compared to ₹57.46 crores for the period ending March 31, 2024. Additionally, the company posted a net profit of ₹131.07 crores for the period ending June 30, 2024, up from a net profit of ₹60.47 crores for the period ending March 31, 2024.

Key Metrics:

• Return on Equity (ROE): 1.55%
• Return on Capital Employed (ROCE): 1.67%
• Techno Electric & Engineering Company Ltd: Techno Electric & Engineering Company Ltd (TEECL) is engaged in providing Engineering, Procurement and Construction (EPC), asset ownership and operations and maintenance services in the power infrastructure industry. During Q1 FY25, the company successfully collected all the outstanding from TANGEDCO and other DISCOMs. The company has outstanding receivables of ₹18.33 crores towards late/interest payment surcharge from the sale of energy

Key Metrics:

• ROE: 13.1%
• ROCE: 16.5%
• Maharashtra Seamless Ltd: Incorporated in 1988, Maharashtra Seamless Ltd manufactures seamless pipes & tubes, ERW pipes. It is also in the business of renewable power generation and rig operations. During Q1 FY25, the company’s order book has increased from ₹1,754 crores to ₹1,812 crores. The order book remains good as the demand environment is conducive for the manufacturing industry and the oil and gas sector. 

Key Metrics:

• ROE: 18.1%
• ROCE: 22.9%
• Nippon Life India Asset Management Ltd: Nippon Life India Asset Mgt. is engaged in managing mutual funds including exchange-traded funds (ETFs); managed accounts, including portfolio management services, alternative investment funds and pension funds; and offshore funds and advisory mandates. The company’s QAAUM grew 12% QoQ & 54% YoY to reach ₹4.84 trillion. The company recorded the highest increase in QAAUM market share on a YoY basis among all AMCs and second second-highest increase in QoQ.

Key Metrics:

• ROE: 29.5%
• ROCE: 36.2%
• ZF Commercial Vehicle Control System India Ltd: ZF Commercial Vehicle Control System India Ltd is India’s market leader for advanced braking systems, conventional braking products and related air-assisted technologies and systems in India. It also provides software development and other services. 

Key Metrics:

• ROE: 15.4%
• ROCE: 20.9%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.