2 Large Cap Debt Free Stocks That Are Significantly Down From Their ATHs: Should You Buy Them?

Debt free status similar to an enterprise also is encouraging for investors. As then the accruals get high, nevertheless it can be an indication of the company being conservative and not trying to leverage. Nevertheless these debt free stocks carry low interest rate risk. So, here are two large cap stocks as per the latest m-cap categorisation that you can consider as a 'Buy' for good gains in the near to long term.

IRCTC:

This Indian Railways scrip has come down from an all time high price of Rs. 1279.26 per share to currently trade at Rs. 789.6 per share. This is a discount of 38% from the highest price.

As the Covid crisis seemed to ease, the catering arm of the Indian Railways has posted profit net profit of Rs. 208 crore as against the previous quarter profit of Rs. 158.57 crore. Also, the company's revenue from operations have also more than doubled on a YoY basis to Rs. 540.21 crore.

SBI Securities is of the view that as the conditions normalise, passenger rail ticket booking witnesses healthy traction, IRCTC, India's largest rail ticket booking platform is a potential beneficiary. Also, there is a view that while ticketing has contributed to most of the company's revenues in the quarter gone by, other businesses of the company shall also gain in due course and hence justify of the future earnings prospects.

Remember this is yet another mutltibagger monopoly stock that gave return to the tune of over 144%.

 

Bharat Electronics:

This Bengaluru based company set up by the GoI under the defence ministry for catering to the specialised electronic requirements of the Indian defence forces is another debt free firm. The firm as given out in the Union Budget 2022 is said to be the government's thrust in the area of infra and engineering.

Prabhudas Lilladher in its report dated February 1, 2022 gave a 'Buy' on the stock for a price target of Rs. 265 per share. "We cut down our earnings estimate by 3.4%/3.2%/3% for FY22/23/24, factoring in semiconductor and logistic issues. We remain positive on long term
growth story of company given its strong order backlog, tender pipeline and diversification in newer business verticals like EV battery, Medical equipments, Metro etc. The stock is currently trading at 21.3x/17.7x/15.1xFY22/23/24E. We roll over our TP to FY24E and maintain 'Buy' rating with TP of Rs265 (Rs 245 earlier).

 

 

Disclaimer:

The stock markets are highly volatile given the global cues, investors should keep a cautious view amid such situations and act accordingly.

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