In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on KNR Constructions Limited (NSE:KNRCON) due to its excellent fundamentals in more than one area. KNRCON is a company with great financial health as well as a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on KNR Constructions here.
Outstanding track record with adequate balance sheet
Over the past few years, KNRCON has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 21% return to shareholders, which is an notable feat for the company. KNRCON is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that KNRCON has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. KNRCON’s has produced operating cash levels of 0.28x total debt over the past year, which implies that KNRCON’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For KNR Constructions, there are three key aspects you should further research:
-
Future Outlook: What are well-informed industry analysts predicting for KNRCON’s future growth? Take a look at our free research report of analyst consensus for KNRCON’s outlook.
-
Valuation: What is KNRCON 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 KNRCON is currently mispriced by the market.
-
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KNRCON? 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.