3 weeks ago

India's Fastest-Growing Low-Debt Companies: Are Any Still Cheap?

India's Fastest-Growing Low-Debt Companies: Are Any Still Cheap?
India’s fastest-growing low-debt companies: Are any still cheap? · financialexpress.com

This article looks at companies in India that grew really fast without borrowing too much money.

Growing fast is exciting, but borrowing lots of money can be risky if business slows down.

The writer searched for companies that grew their sales by more than 20% every year for seven years and kept their debt very low.

She found five such companies.

One builds solar power plants, one delivers food and groceries, one helps people book train and flight tickets, one makes phones and electronics, and one sells insurance online.

All five grew big while staying almost debt-free.

But the story also warns that low debt does not always mean a company is a great deal, and some of these stocks are quite expensive.

So investors should study each company carefully before spending their money.

Key facts

Companies screened
5
Screening criteria
Market cap above Rs 5,000 crore; annual sales above Rs 100 crore; 7-year sales CAGR above 20%; debt-to-equity below 0.25
Highest 7-year sales CAGR
Waaree Renewable Technologies (152.9%)
Fastest Q1 FY27 revenue growth
Eternal (182% YoY to Rs 20,211 crore)
Lowest debt-to-equity
Le Travenues Technology (0.02); highest among the five is Dixon Technologies (0.21)
Most expensive valuation
Eternal at 99.3 times EV/EBITDA vs peer median of 15 times
Biggest one-year share-price gain
Eternal, up 5.9%; the other four fell between 11.7% and 22.6%
Data source
Screener.in, Q1 FY27 company results and earnings-call transcripts

Sources

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