Venky's (India) Limited (NSE:VENKYS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of VENKYS, it is a financially-sound company with a great track record superior dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Venky's (India) here.

Flawless balance sheet, good value and pays a dividend

VENKYS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. VENKYS's has produced operating cash levels of 1.12x total debt over the past year, which implies that VENKYS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. VENKYS is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if VENKYS's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, VENKYS's share price is trading below the group's average. This further reaffirms that VENKYS is potentially undervalued.

VENKYS is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

Next Steps:

For Venky's (India), I've compiled three essential factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for VENKYS’s future growth? Take a look at our free research report of analyst consensus for VENKYS’s outlook.

2. Historical Performance: What has VENKYS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VENKYS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.