Debt-Free Stocks Aren’t Always Safe: Examining Hidden Risks

Imagine you're looking at companies to invest in.

Some look strong because they don't owe any money.

This article says that's not the whole story.

It looks at three companies: Mazagon Dock, which makes ships, Indraprastha Gas (IGL), which sells gas, and Sirca Paints, which makes paint.

Even though they have no debt, they face problems.

Mazagon Dock depends on one customer and has project delays.

IGL has gas supply cuts and faces competition from electric cars.

Sirca Paints is dealing with tougher competition and rising costs.

The article wants you to remember that how well a company does and how it is run are more important than just whether it has debt.