Is ITC A Zero Debt Company?

Is ITC a value trap?

The company distributed 80-85% of profit as dividend.

If the management is unable to do so, and cannot maintain or grow its cash flow from the tobacco business, ITC will continue to trade at a cheap valuation and will be a value trap..

Who is the owner of ITC?

Sanjiv PuriITC LimitedFormerlyImperial Tobacco Company of India Limited (1910–1970) India Tobacco Company Limited (1970–1974) I.T.C. Limited (1974–2001) ITC limited (2001–present)HeadquartersVirginia House, Kolkata, West Bengal, IndiaArea servedIndian Subcontinent Gulf CountriesKey peopleSanjiv Puri (chairman & MD)16 more rows

Is L&T debt free?

L&T had a consolidated debt of Rs 1.24 trillion as of March 2019, with the finance cost of Rs 9,354 crore last year. The consolidated debt includes a debt of Rs 91,504 crore of its finance company. … Hence, L&T Finance’s debt should not be considered while looking at L&T’s debt.

What is virtually debt free?

Companies take loan for saving tax or for maintaining some working capital cash flow obligations. Such comes are called virtually debt free because they can offset their cash reserves with outstanding loan at any point of time. Cupid is virtually debt free.

Is BHEL a debt free company?

We note that Bharat Heavy Electricals Limited (NSE:BHEL) does have debt on its balance sheet.

Is Zero Debt good for a company?

Advantages of debt-free firms By having less debt or zero debt, companies send a signal to the outside word that they are able to manage their funding requirements predominantly through internally generated cash and thus they are cash-rich firms.

Does ITC have debt?

About Total Debt Based on the latest financial disclosure, ITC LTD has a Total Debt of 2.75 B. This is 49.35% lower than that of the Consumer Defensive sector and 85.65% lower than that of the Tobacco industry. The total debt for all India stocks is 48.28% higher than that of the company.

Which are the debt free companies in India?

Top Debt Free Companies in India 2020Hindustan Unilever.HDFC Life Insurance.SBI Life Insurance.ICICI Prudential Life Insurance.HDFC AMC.Bajaj Holdings & Investment Limited (BHIL)SKF India.Maharashtra Scooters.More items…•

Is Ashok Leyland debt free?

Commercial vehicle manufacturer Ashok Leyland Ltd. is expected to be a debt-free company in two years’ time, as it expects a pick-up in volumes from the third quarter of FY21, a top company executive said. … ALL had a net debt of ₹2,000 crore during March 2020.

Is ITC debt free company?

ITC Ltd – Quantitative Analysis The Company is virtually debt free. Amidst the current lockdown due to COVID-19 pandemic, the debt-free companies have an extra edge over its peers by the investors. The concern of repaying the interest on the Loans amid dampened revenue and cash flows would not be the case for ITC.

Is ITC a good long term investment?

ITC has been consistently growing year after year since 2000 till year 2019. Its Market Value was just 18 thousand crore in year 2000. Last year 2019, ITC was worth 3.63 lac crore ! The above chart shows its consistent growth for past 19 years.

Should I buy ITC shares now?

The bulls batting for ITC believe that the stock remains attractive at these low valuations….ITC: Value buy or value trap?Brokerages on ITCRecommendationTarget PriceB&K SecuritiesBuy₹353Kotak Institutional SecuritiesBuy₹240Ashika Stock BrokingBuy₹ 220Motilal OswalNeutral₹ 1853 more rows•Oct 20, 2020

Will ITC share price go up tomorrow?

This stock started moving upwards as soon as it opened. Generally this happens when there is a positive sentiment following the stock, making it attractive. There’s a good chance that this upwards movement will continue tomorrow as well….Munafa value: 75 as on 07 Mon Dec 2020.Strong resistance216Strong support1497 more rows

Is Dmart debt free?

Adjusting for depreciation, the retailer made Rs 480-crore cash profit in the quarter. At this rate, the company may have a significant cash balance by the end of FY20, with negligible or no net debt.

Is Facebook Debt Free?

The good news for investors is that Facebook has no debt. It has been operating its business with zero debt and utilising only its equity capital. Investors’ risk associated with debt is virtually non-existent with FB, and the company has plenty of headroom and ability to raise debt should it need to in the future.