Street votes for cos with no debt overhang to outlast tough times

Investors have preferred to bet on strong companies of late as a weakening economy has made earnings prospects hazy. The focus has been on companies with minimum debt that are considered best suited to withstand tough times. Shares of around 47 of the 60 debt-free companies in the BSE 500 index have gained as much as 100% in 2019. Out of the 47 stocks, 16 have been top performers for three consecutive years. They include Astrazeneca Pharma, Info Edge, Bata, NIIT Tech, Jubilant Food, VST Industries, Infosys, Sanofi and Abbott India Analysts said investors will continue to prefer debt-free companies till the time the economy starts recovering. 73165058

from Economic Times https://ift.tt/39U0Pn1