Synopsis:
Here’s a look at five companies quietly rewarding their investors with strong returns, all while keeping debt low and profitability high. From tobacco and auto to healthcare and defense tech, these businesses are showing that consistent performance and smart capital use can go a long way in building lasting wealth.
In today’s volatile stock market, investors are increasingly turning toward companies that combine two key ingredients for long term wealth creation, low debt levels and high return ratios. Here are five such companies that stand out with strong ROCE, ROE, and minimal or near zero debt, making them worthy additions to any long term investor’s watchlist.
Godfrey Phillips India is a key player in India’s tobacco and FMCG landscape. Known for its flagship cigarette brands such as Four Square, Red & White, and Marlboro, the company also operates in packaged foods, confectionery, and retail through Twenty Four Seven convenience stores. The company also manufactures and distributes the iconic Marlboro brand of cigarettes in India under a licensing agreement with Philip Morris International. With a long standing legacy and efficient supply chain, it has built a strong brand recall in both urban and rural markets. Its stock currently trades at Rs. 8,536.
With a market capitalization of Rs. 44,382 crore, the company operates with a debt to equity ratio of just 0.03, reflecting extremely low leverage. It boasts a healthy return on capital employed (ROCE) of 29.62 percent and a return on equity (ROE) of 24.32 percent, indicating efficient use of shareholder funds and operating capital.
The company has posted a 1 year return of 112.66 percent, highlighting strong investor confidence. With a P/E of 38.49 and a robust ROA of 18 percent.
Gabriel India is one of the most trusted names in India’s auto components industry, particularly in the suspension segment. With a diversified clientele across two-wheelers, passenger cars, commercial vehicles, and railways, Gabriel has firmly positioned itself as a key OEM partner. The company is also driving growth through electric mobility partnerships and product innovation. Its shares are currently priced at Rs. 1,065.30.
The company has a market capitalization of Rs. 15,302 crore, a debt to equity ratio of 0.01, and maintains a ROCE of 26.44 percent alongside a ROE of 19.57 percent. This reflects its strong ability to generate profits with minimal external liabilities.
The stock has rewarded investors with a 1 year return of 108.71 percent, and while the P/E of 72.19 is high, the valuation reflects its growth trajectory. The company’s ROA stands at 12.47 percent, showcasing solid profitability along with near zero leverage.
Force Motors is a well established player in India’s commercial vehicle and utility segment. The company manufactures everything from light commercial vehicles and multi utility vehicles to agricultural tractors and engines. It is also an OEM supplier to brands like Mercedes Benz and BMW in India. With consistent R&D investments and a legacy of rugged, value for money vehicles, Force Motors is quietly building a premium niche. The stock is currently priced at Rs. 16,613.35.
With a market capitalization of Rs. 21,890 crore, debt to equity ratio at just 0.01, and a ROCE of 29.80 percent, the company demonstrates disciplined capital usage. The ROE of 20.68 percent underscores its ability to deliver substantial shareholder returns.
The company has generated an impressive 1-year return of 99.84 percent, supported by its P/E ratio of 40.09. With a ROA of 11.46 percent and almost zero debt, Force Motors stands out for both stability and scalability.
Narayana Hrudayalaya is one of India’s leading healthcare chains, focused on affordable cardiac and multi-specialty care. The hospital network spans India and the Cayman Islands, with a reputation for high quality outcomes at scale. With increased focus on medical technology and expansion in tier-II cities, the company is creating a sustainable, pan India healthcare delivery model. Its stock currently trades at Rs. 1,970.75.
It has a market capitalization of Rs. 40,274 crore, a moderate debt to equity ratio of 0.67, and shows strong capital efficiency with a ROCE of 20.63 percent and ROE of 24.47 percent.
The stock has delivered a 1 year return of 60.73 percent, with a P/E of 50.60. A healthy ROA of 12.36 percent further signals strong operational efficiency across its hospital units.
Zen Technologies is a leading defense tech company specializing in simulation-based training systems for military and law enforcement agencies. Its indigenous solutions support weapons training, driving simulators, UAV tech, and more. The company benefits from government defense spending, export orders, and its early mover advantage in simulation tech. The stock currently trades at Rs. 1,898.80.
Zen Technologies has a market capitalization of Rs. 17,144 crore, a very low debt-to-equity ratio of 0.04, and showcases industry-leading profitability with a ROCE of 36.71 percent and a ROE of 26.08 percent.
Zen has delivered a 1-year return of 47.06 percent, and while the P/E of 61.23 suggests premium pricing, its fundamentals support the valuation. The ROA of 21.38 percent is among the highest in the segment, backed by robust profitability and minimal debt exposure.
Manan Gangwar
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