Even if you’re just at 0.001% of your stock market journey, @Shaunak, it’s important to keep an eye on the debt levels of these companies. A single change in government policies could have a significant impact on them, so be cautious.
Current D/E ratios:
- IREDA = 5.8
- NHPC = 0.84
- Tata Power = 1.66
- Adani Green = 8.65
- Hi-Green Carbon Ltd = 0.32
In my view, a D/E ratio below 0.25 is ideal, 0.5 is good, and I tend to avoid companies with ratios above 0.5.
Note: This is just one of many factors to consider when evaluating companies.
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