2 stocks to watch out for this year
UMBAI: Taking long-term investment decisions based on business fundamentals can never go out of fashion. In fact, it becomes necessary to assess the fundamental strength of companies when macroeconomic data shows a clouded picture.
To help investors pick right opportunities in the equity market, the ET Intelligence Group has shortlisted a dozen companies from across the large-cap, mid-cap and small-cap segments, which look promising given their strong fundamentals and expected deman ..
To help investors pick right opportunities in the equity market, the ET Intelligence Group has shortlisted a dozen companies from across the large-cap, mid-cap and small-cap segments, which look promising given their strong fundamentals and expected deman ..
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Few pointers about why debt free companies are good bet for investment is given below:-
- Debt free companies are not affected by economic slowdown or interest rate hike. They can sustain their business in economic slowdown condition also.
- Profitability of debt free (Zero debt) companies will be high compared to high debt companies. High-Interest rate negatively affects profit margin of high debt companies.
- In India Interest rate and inflation rate are unpredictable which makes debt free companies more suitable for investment.
- These companies enjoy extra income as interest on cash balance which is added surplus in profitability.
- High profitability means good dividend to investors.
- These companies can expand their business due to ample amount of cash or can acquire other businesses.
- Low debt companies need not to keep cash aside to meet the cost of capital, which high debt companies have to set aside.
- Debt free companies are low-risk companies preferred by common man and expert investors.
