Focusing on stocks with low debt-to-equity ratios and strong profit margins offers investors a dual advantage: financial stability and operational efficiency. Companies with these characteristics typically have lower financial risk, better creditworthiness, and more sustainable earnings potential. This conservative yet profitable approach often indicates well-managed businesses poised for long-term growth and resilience.
1. Wipro
Wipro, founded in 1945 and headquartered in Bengaluru, Karnataka, is a global leader in information technology, consulting, and business process services. Under the leadership of CEO Thierry Delaporte, Wipro provides a broad range of services, including IT services, digital transformation, cloud computing, and cybersecurity.
The company operates in over 50 countries, serving clients in various sectors such as healthcare, financial services, manufacturing, and retail. Recently, Wipro has focused on expanding its digital offerings and investing in AI and automation technologies to improve service delivery. The company continues to strengthen its position in the global IT sector with an emphasis on innovation and sustainability.
Wipro’s revenue from operations has decreased by 0.8 percent from Rs. 90,488 crore in FY23 to Rs. 89,760 crore in FY24. The company’s net profit has decreased from Rs. 11,366 crore in FY23 to Rs. 11,112 crore in FY24, which is down by 2.23 percent. Furthermore, the company has a stable operating profit margin of 19%.
With a market capitalisation of Rs. 2,96,588 crores, Wipro Limited’s share price closed at Rs. 566.90 per equity share. The company currently has a debt-to-equity ratio of 0.19
2. Siemens
Siemens, founded in 1847 and headquartered in Munich, Germany, is a global powerhouse in electrification, automation, and digitalization. Under CEO Dr. Roland Busch, Siemens offers products and services in diverse sectors, including energy generation, building technology, transportation, and healthcare. With operations in over 200 countries, the company is a major player in the global industrial landscape. Siemens is actively pursuing sustainability initiatives and digital transformation to improve operational efficiency across industries.
Siemens’s revenue from operations has increased by 21.12 percent from Rs. 14,832 crore in FY23 to Rs. 17,965 crore in FY24. The company’s net profit has increased from Rs. 1,531 crore in FY23 to Rs. 1,911 crore in FY24, which is up by 24.82 percent. Furthermore, the company has a stable operating profit margin of 13%.
With a market capitalisation of Rs. 2,40,806 crores, Siemens Limited’s share price closed at Rs. 6,761.95 per equity share. The company currently has a debt-to-equity ratio of 0.
3. Hindalco Industries Ltd
Hindalco Industries Ltd, part of the Aditya Birla Group, was founded in 1958 and is headquartered in Mumbai, India. Led by CEO Satish Pai, Hindalco is a global leader in the metals sector, primarily producing aluminium and copper products. Its operations include bauxite mining and alumina refining.
Hindalco operates both in India and internationally, with manufacturing facilities across multiple regions. Hindalco is increasingly focusing on sustainability, with investments in green technologies to reduce its carbon footprint. The company’s commitment to innovation and environmental responsibility positions it as a key player in the global metals industry.
Hindalco’s revenue from operations has decreased by 3.24 percent from Rs. 2,23,202 crore in FY23 to Rs. 2,15,962 crore in FY24. The company’s net profit has increased from Rs. 10,097 crore in FY23 to Rs. 10,155 crore in FY24, which is up by 0.57 percent. Furthermore, the company has a stable operating profit margin of 12%.
With a market capitalisation of Rs. 1,41,125 crores, Hindalco Industries Limited’s share price closed at Rs. 628 per equity share. The company currently has a debt-to-equity ratio of 0.51.
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4. Ambuja Cements
Ambuja Cements, founded in 1983 and headquartered in Mumbai, Maharashtra, is one of India’s leading cement manufacturers. Under CEO Neeraj Akhoury, the company produces a variety of cement types, including ordinary Portland cement (OPC) and Portland pozzolana cement (PPC). Ambuja operates across India, with multiple manufacturing plants and a robust distribution network.
Ambuja has been focusing on increasing its production capacity while enhancing sustainability practices through eco-friendly initiatives. As the cement industry moves toward greener alternatives, Ambuja’s commitment to sustainability and operational efficiency continues to drive its growth in the competitive Indian market.
Ambuja Cements’s revenue from operations has decreased by 14.83 percent from Rs. 38,937 crore in FY23 to Rs. 33,160 crore in FY24. The company’s net profit has increased from Rs. 3,024 crore in FY23 to Rs. 4,738 crore in FY24, which is up by 56 percent. Furthermore, the company has a stable operating profit margin of 19%.
With a market capitalisation of Rs. 1,34,166 crores, Ambuja Cements’s share price closed at Rs. 544.70 per equity share. The company currently has a debt-to-equity ratio of 0.
5. Cipla
Cipla, founded in 1935 and headquartered in Mumbai, is a leading global pharmaceutical company known for its diverse range of medicines. CEO Umang Vohra oversees the company’s broad portfolio, including treatments in the respiratory, cardiovascular, anti-infective, and oncology sectors.
Cipla operates in over 80 countries, making significant strides in global healthcare. Cipla has been at the forefront of developing generic medicines and COVID-related treatments, including vaccines. The company’s focus on affordable healthcare and commitment to innovation in pharmaceutical solutions have established it as a major player in the global healthcare industry.
Cipla’s revenue from operations has increased by 13.1 percent from Rs. 22,753 crore in FY23 to Rs. 25,774 crore in FY24. The company’s net profit has increased from Rs. 2,833 crore in FY23 to Rs. 4,154 crore in FY24, which is up by 46.6 percent. Furthermore, the company has a stable operating profit margin of 24%.
With a market capitalisation of Rs. 1,21,244 crores, Cipla’s share price closed at Rs. 1,501.30 per equity share. The company currently has a debt-to-equity ratio of 0.01.
Written By Fazal Ul Vahab C H
Disclaimer
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