TCS, Infosys, HUL and more – here’s the list of zero debt companies of Nifty 50

• TCS, Infosys and HUL lead the pack when it comes to zero debt companies in India.
  
• Together, these seven Nifty 50 companies command a market cap of over ₹31 lakh crore.
  
• With interest rates increasing all over the world, finance risk has also increased as high interest expenses eat into the profits of companies.
  

The low interest rate regime is over, with the Reserve Bank of India showing that it is determined to tame inflation and de-prioritize growth in the short term. While this spells trouble for companies with high debt, those with low or zero debt are in a better position to go forward – without the burden and risk of excess debt.

But with analysts predicting slowflation or even stagflation, the days of high growth are over for now. This means companies will not only have to be content with low growth and rising costs, and high interest rates will make matters worse.

In such a scenario, zero debt companies remain a lucrative investment option. Here are the seven zero debt companies in the benchmark Nifty 50 index:

Tata Consultancy Services

Indian IT giant TCS is the largest listed company with zero debt on its books. It has a market cap of nearly ₹12 lakh crore, with over $26 billion in revenue in FY22 and net profit of over $5 billion.

Infosys

Infosys, another IT giant, follows closely in the footsteps of TCS with a market cap of over ₹6 lakh crore. Its revenue in FY22 stood at over $16 billion and net profit at nearly $3 billion.

Hindustan Unilever

India’s largest FMCG company, HUL has a market cap of over ₹5 lakh crore. Its revenue in FY22 came in at nearly $6.5 billion while profit stood at $2.4 billion, thanks to its 44 brands across 14 categories.

ITC

The tobacco-to-paper giant has a market cap of over ₹3 lakh crore now. Thanks to its presence across paper, tobacco, hotels, software and more, the company’s FY22 revenue stood at $8.4 billion, while net profit came in at nearly $2 billion. It has managed to remain debt-free in spite of its presence in the high capex sector of hotels.

Maruti Suzuki India

India’s largest car maker, Maruti Suzuki has weathered the post-pandemic storm and sits in a comfortable position now thanks to zero debt on its books. Its closest rival, Tata Motors, is one of the most indebted companies in the country. With a market cap of ₹2.6 lakh crore, Maruti Suzuki clocked over $11 billion in revenue in FY22, but profit stood at $497 million.

SBI Life Insurance

The insurance subsidiary of India’s largest bank has a market cap of ₹1.08 lakh crore. Its revenue for FY22 stood at $10.6 billion, while net income stood at $193 million.

Divi’s Laboratories

Divi’s Laboratories is the only debt-free company from the pharma sector in the list with a market cap of a little over ₹96,000 crore. The FYY revenue of the generics and nutraceutical maker came in at $1.2 billion while net profit stood at $378 million.


Source: NSE, as on June 30, 2022

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