20 Companies Deep in Debt

When it comes to leverage, debt to equity is the first ratio which is checked. Since the last year the debt condition of many companies, like those in the infrastructure and the capital goods domain, is worsening. The stock market seems to be staying away from them. They have been selling their projects to restructure debt. Another ratio which measures leverage is the debt-to-market-cap ratio. The debt-to-market-cap ratio over 1 means that the company has more debt than its current market value. Such companies will increasingly find it difficult to raise fresh funds. Also, their stock prices will remain in check. We checked the debt-to-market-cap ratio of the BSE 500 companies and found that it is at a record level. Following is the list of top 20 companies with the highest debt-to-market-cap ratios. Company NameNet Worth(₹cr)Debt(₹cr)Market Cap(₹cr)Debt toMarket CapLanco Infratech144036705119930.61Bhushan Steel905835224128727.38Alok Industries34482001298620.29Gitanjali Gems3944848443519.5GVK Power & Infrastructure277822613129217.5Jaiprakash Associates1007473162430516.99Jaiprakash Power Ventures634528066209213.42MTNL504314216107713.2IVRCL1948833465012.83Shree Renuka Sugars-498956010569.05Punj Lloyd223268628128.45Videocon Industries46984021250168.02Orchid Chemi