Dewan Housing Finance Corporation Limited (NSE:DHFL) 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 DHFL, it is a highly-regarded dividend payer with a excellent growth outlook, not yet priced into the stock. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Dewan Housing Finance here.

Very undervalued with high growth potential and pays a dividend

DHFL 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 DHFL’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, DHFL’s share price is trading below the group’s average. This bolsters the proposition that DHFL’s price is currently discounted.

For those seeking income streams from their portfolio, DHFL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.0%, making it one of the best dividend companies in the market.

Next Steps:

For Dewan Housing Finance, I’ve put together three important aspects you should further research:

1. Historical Performance: What has DHFL’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.

2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

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

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.