I still remember selling Aurobindo Pharma at a loss (120 before split and now it would have been a 14 bagger) because most of the people dismissed that company because of very high debt (we tend to
like debt free companies).
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Once you have found
the debt free company, you can analyze it further to check its financial and economic health before investing.
In this post, I'm going to explain how you can find
the debt free companies in India using screener website.
Hence, it's better to teach you how to find
the debt free companies in India than just to give names.
However, if I want to create leverage using borrowed funds or by pledging the shares of
a debt free company, my cost would be definitely higher.
Just a thought --- When we borrow money to buy stock of
a debt free company, it is recourse debt.
Give recent low interest rates, it could be that
debt free companies are hurting their returns by not taking on some leverage.
Stable,
debt free company, dependable 40 hour week.