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20 Companies Deep in Debt

High debt-to-market-cap ratio means trouble and one should steer clear of these 20 companies that are sporting high ratios


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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.

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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
(Rcr)
Debt
(Rcr)
Market Cap
(Rcr)
Debt to
Market Cap
Lanco Infratech144036705119930.61
Bhushan Steel905835224128727.38
Alok Industries34482001298620.29
Gitanjali Gems3944848443519.5
GVK Power & Infrastructure277822613129217.5
Jaiprakash Associates1007473162430516.99
Jaiprakash Power Ventures634528066209213.42
MTNL504314216107713.2
IVRCL1948833465012.83
Shree Renuka Sugars-498956010569.05
Punj Lloyd223268628128.45
Videocon Industries46984021250168.02
Orchid Chemicals & Pharma38034144287.98
KSK Energy Ventures28731513420257.48
ABG Shipyard137654627757.04
Ballarpur Industries229761449116.74
Usha Martin199037325766.48
Aban Offshore38461456123126.3
Rain Industries2946767312985.91
GMR Infrastructure60864504176425.89

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