Should You Consider Bharat Rasayan Limited (NSE:BHARATRAS)?

In This Article:

Bharat Rasayan Limited (NSE:BHARATRAS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of BHARATRAS, it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Bharat Rasayan here.

Outstanding track record with adequate balance sheet

Over the past year, BHARATRAS has grown its earnings by 57%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 33% return to shareholders, which is what investors like to see! BHARATRAS’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. Debt funding requires timely payments on interest to lenders. BHARATRAS’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

NSEI:BHARATRAS Income Statement, March 18th 2019
NSEI:BHARATRAS Income Statement, March 18th 2019

Next Steps:

For Bharat Rasayan, I’ve compiled three key factors you should further examine:

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

  2. Valuation: What is BHARATRAS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BHARATRAS is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BHARATRAS? 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.