Debt Free Company Stocks That You Should Invest In India

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    It is always a great idea to buy stocks that are not only debt free, but, also have solid cash flows. These stocks also tend to provide great dividends, but, since the prices are high for such stocks, their dividend yields may not always be the best. Take a look at a few stocks that are debt free and can be good investment bets.

    NMDC

    NMDC

    NMDC is a government owned company that is into iron ore mining. Recently, the prices of iron ore have been moving higher, which augurs well for the company. 

    Like several other government owned companies like HPCL, Coal India, Powergrid etc., NMDC is also an excellent play on dividends. 

    The stock is available at a dividend yield of around  4 per cent. Dividends are also tax free upto a sum of Rs 10 lakhs. 

    NMDC is not only a debt free company, but, is also a cash rich company with a stock pile of cash in its books. 

    NMDC: Fundamentally undervalued

    NMDC: Fundamentally undervalued

    NMDC has performed reasonably well over the last few quarters. Net profits have grown for the quarter ending June 30, 2018 to Rs 975 crores.  

    The company in all probability will do an EPS of Rs 15 for 2018-19. This makes the stock available at a p/e of just about 9 times. 

    With a steady cash flow, a decent dividend yield of around 4.5 per cent and firming iron ore prices, the stock of NMDC remains a good bet at the current levels. The risk to a downside remain limited at current market price. Check stock quote of NMDC here

    The stock is an ideal pick on account of the decent dividend yield. 

    Coal India

    Coal India

    Coal India is not only a debt free company, but, is also a cash rich company. The good thing about Coal India is that the dividend yields on the stock are extremely high, which always makes it an attractive buy.

    In fact, if the company maintains its past dividends, than the dividend yields itself would be in the range of 5-6 per cent. 

    There are also many positives of Coal India. The first being the fact that we are seeing a positive uptick in the prices of coal and volumes have been far better.

    Apart from this, wage hikes are now behind, which should add lesser pressure on the company. 

    For the quarter ending June 30, 2018, the company posted a 61.07 per cent jump in consolidated net profit at Rs 3,786.44 crore. The momentum is expected to continue in the coming days. 

    The downside risk on Coal India is minimum, given the dividend yield. Check stock quote of Coal India here

    Disclaimer

    Disclaimer

    This article is strictly for informational purposes only. It is not a solicitation to buy, sell in precious metal products, commodities, securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article. 

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