Indosolar and 4 other stocks that have reduced their debt by over 90% in last 5 years

Synopsis: This article lists Indosolar, GHCL and 3 other well-known firms that have reduced their debt by 90 percent over the last 5 years.\

In volatile market conditions, companies that have sharply reduced their debt over the past few years tend to emerge as stronger and more resilient investments. Lower debt levels reduce the interest costs, strengthen cash flows, and limit refinancing risks, this helps businesses protect profitability even during economic uncertainty. 

Stocks with low leverage, attractive valuations compared to industry P/E averages, and superior ROE and ROCE often gain investor preference for their financial stability and long-term growth potential.

Indosolar Ltd

Indosolar Ltd began its operations as a solar photovoltaic cell manufacturer in 2009. Indosolar had Rs 829 crore in Total Debt in 2019, but has managed to successfully reduce it to just Rs 3 crores by H1FY26. 

Indosolar shares trade around Rs 451 per share and have a P/E Ratio of 8.79, which indicates it is quite undervalued considering the industry average of 44.1. Indosolar has a Return on Capital Employed (ROCE) of 77 percent and a Return On Equity (ROE) of 420 percent. But make sure to keep in mind these numbers emerged after Waaree Energies Limited cut its stake by more than 20 percent in the latest quarter, with now holding just 74.94 percent.

GHCL Ltd

Founded in 1983, GHCL Limited is currently one of the largest Soda Ash Manufacturers in India. Five years ago, GHCL approximately had Rs 1,254 crore in Total Debt, whereas today, they have succeeded in bringing it down to just Rs 97 crores. 

GHCL currently trades around Rs  586 per share with a P/E Ratio of 9.92 compared to the industry average of 19.8. Another highlight is that the company demonstrates a ROCE of 24 percent and a ROE of 19 percent

Chambal Fertilisers & Chemicals Ltd

Incorporated in 1985, Chambal Fertilisers & Chemicals Ltd is engaged in the production of urea. The company had a massive debt of Rs 10,113 crore five years ago, but today its debt has been slashed to just Rs 100 crore. 

Chambal Fertilisers stock is currently trading around Rs 420, with a P/E of 9.04 compared to the industry P/E of 21.8, this makes it significantly undervalued. The company has a strong ROE of 20 percent and ROCE of 27 percent.

Symphony Ltd

Symphony Ltd is engaged in the manufacturing and trading of residential, commercial, and industrial air coolers across domestic and international markets. Five years ago, the company had a debt of Rs 210 crore, which has now been reduced to Rs 5 crore. 

The stock currently trades at around Rs 894, with a P/E of 35.9 versus the industry P/E of 50.5. With a strong ROCE of 37 percent and ROE of 32.4 percent, the company showcases exceptional profitability and leadership in the cooling solutions market.

Rolex Rings Ltd

Rolex Rings Ltd is one of the leading manufacturer of forged and machined components in India and is also ranked among the top five forging companies in the country. Back in 2020, its debt stood at Rs 259 crore, but today the company has brought it down to just Rs 10 lakh. 

The stock is currently trading around Rs 124, with a P/E of 18.7 compared to the industry P/E of 29.1. With a ROCE of 22.8 percent and ROE of 19 percent, the company continues to deliver healthy returns in the engineering and forging sector.

Written by Adithya Menon

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