- Date : 21/09/2023
- Read: 2 mins
In 2023, consider zero debt and zero pledge stocks for a balanced portfolio. These companies carry no financial burdens, ensuring a secure investment.
Today, zero debt and zero pledge stocks have emerged as beacons of stability and promise. But what exactly do these terms signify? Put simply, a zero debt company carries no financial burdens, while a zero pledge company means that the promoters have not risked their stake for loans. Investing in such companies promises lower risk and financial stability, making them an attractive prospect for many investors.
Highlights:
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Investing in zero debt stocks provides a foundation of financial stability and lower risk.
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The top picks for 2023 include LIC, ZF Commercial, New India Assurance, Nippon Life, and Gillette India.
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Consider industry-specific conditions and needs before committing to zero debt stocks for a well-rounded portfolio.
Top 5 Zero debt & Zero pledge Stocks
1. Life Insurance Corporation (LIC)
A government-owned insurance giant in India, LIC offers a diverse range of life insurance products.
2. ZF Commercial Vehicle Control System India Limited
Specialising in manufacturing and selling commercial vehicle control systems, this company plays a vital role in the transportation sector.
3. New India Assurance Company
As a government-owned insurance powerhouse, it provides a spectrum of insurance products, including motor, health, travel, and home insurance.
4. Nippon Life India Asset Management Limited
This company offers a wide range of asset management services, including mutual funds and exchange-traded funds (ETFs).
5. Gillette India
The company excels in manufacturing and selling personal care products, including razors and shaving creams.
Also Read: Investing In Metal Stocks? Here Are The 6 Key Picks For 2023!
A Glance at the Financials
Methodology of Selection
These stocks are selected based on market capitalisation and the following criteria:
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Debt and pledged percentage at zero
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Five-year profit growth of 3% or more
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Quarterly profit and sales growth of 3% or more
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Promoter holding exceeding 60%
The Takeaway
Investing in zero debt and zero pledge stocks can be a prudent move, but it's not without considerations. Ensure you evaluate the company's financial health, industry conditions, management quality, and other critical factors. Remember that while these stocks offer lower risk, a diversified portfolio and staying informed are keys to successful investing.
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Also Read: Striking Gold In Iron And Steel: 6 Top Performers In India's Iron And Steel Sector For 2023
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
