Debt-ridden companies where you can invest for long-term

Debt companies invest long term
For any long-term investment, we try to find out those stocks having no debt, great management and best future. But from this post, i am suggesting those stocks for long-term investments having debt pressure on its books. If following companies would become successful in achieving debt at value of reasonable, then their stock could give 7 times returns from current market price.

Shipping Corporation of India

Shipping Corporation of India is one of India’s largest shipping companies owned by the Government of India. The company owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business; servicing both national and international trades. Sailing through for nearly five decades, the SCI today has a significant presence on the global maritime map.

Shipping corporation can surely be used for long-term investment because of two reasons. First is that their financial numbers are good enough to satisfy most of the investors. Operating profit, Revenue, balance sheet etc all are good. Company doesn’t have higher debt on its books which could have significant effect on their earnings. Second is that future of company is great and i think more opportunities would open for company in upcoming quarters.

Most of the government owned companies have gave good returns in last few months. But shipping corporation has not taken much part in this rally. This can be because of current profit earnings of company. But i think it would improve in future. So, one should buy this stock with long-term view for minimum 4 years.

Rolta

Rolta is a multinational organization headquartered in India. Company has executed projects in over 40 countries. It offers solutions for many vertical segments, including Federal and State Governments, Defense and Homeland Security, Utilities, Process, Power, Financial Services, Manufacturing, Retail and Healthcare.

Rolta is another stock which i feel should be used for long-term investment. The best part of the business of Rolta is that they offers diversified services to different business. In recent talk with news channel, management had confirmed that they have not planned any debt restructuring plan yet, but would try to plan soon.

If we talk about fundamentals, i think all is good about company. Even debt is also not much bad because it is not so much that could rarely effect the financial numbers highly. Company need to focus on achieving stable growth in their earnings which would directly effect the debt as well as balance sheet. Highlighting all the facts of company, i think one can buy rolta for long-term for minimum 5 years.

3i Infotech

3i Infotech Ltd is a global Information Technology company which provides technology solutions to over 1500 customers in more than 50 countries. The company’s solution and services include Managed IT Services, Application Software Development & Maintenance, Payment solutions, Business Intelligence, Document Imaging & Digitization, IT consulting and various Transaction Processing services.

Like many other IT companies, 3i infotech also offers services for many different sectors. It was promoted and listed by ICICI bank who had majority stake in company. But with passage of time, icici bank had continusely decreased its stake in company. And the result is that now there is no majority stake holder in company. But this doesn’t mean that company have no future. The problem behind low price of stock is of high losses that company had faced in its previous quarters. Any investment institution or firm would consider to buy it only if company posts regular profit in its quarters and achieve a stable growth.

The good part of buying this stock is that there is less risk and great potential. Therefore, one can buy it with a long-term view of minimum 5 years.

Jaiprakash Power

Jaiprakash power is an Indian power company, incorporated on Dec 21, 1994, and is a part of Infrastructure conglomerate – Jaypee Group. Company develop, implement and operate power projects in India.

JP Group is one of the best known groups of india because of their earlier hardworks. But from last 5 years, we have seen group stocks loosing its importance and market value with every single year. The main reason for this was because of increasing pressure of Debts on its Books. As a result, all of their three listed companies is now around Rs.10/share. Among which, Jayprakash power is around Rs.4.50.

The reason behind selecting this stock as a long-investment is that company really has great future. Not because of debt, but because of future of Power sector, i am bullish on this stock. From my view, i don’t think that there is any large risk in this stock for any long-term investment. When Nifty was around 8000, we could assume that stock may not has great opportunity because of low valuations in various sectors. But, now when nifty is around 9500, i feel this is not correct going on with stock. Stock must be around Rs.9/share. Therefore, a investor should buy this stock for long-term for minimum 4 years.

Not only Jaiprakash power, i believe there are much more options in market if you have confidence in over-debt companies.

We will be back with new post for long-term investors suggesting High potential stocks having great future and minor or no debt.

Have any question related to this post? Feel free to ask through comment box given below.


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