These Factors Make Madhya Bharat Agro Products Limited (NSE:MBAPL) An Interesting Investment

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Attractive stocks have exceptional fundamentals. In the case of Madhya Bharat Agro Products Limited (NSE:MBAPL), there's 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. If you're interested in understanding beyond my broad commentary, take a look at the report on Madhya Bharat Agro Products here.

Solid track record with excellent balance sheet

Over the past few years, MBAPL has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did MBAPL outperformed its past performance, its growth also exceeded the Chemicals industry expansion, which generated a 13% earnings growth. This paints a buoyant picture for the company. MBAPL's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that MBAPL manages its cash and cost levels well, which is a crucial insight into the health of the company. MBAPL seems to have put its debt to good use, generating operating cash levels of 0.81x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NSEI:MBAPL Income Statement, July 17th 2019
NSEI:MBAPL Income Statement, July 17th 2019

Next Steps:

For Madhya Bharat Agro Products, I've compiled three relevant aspects you should further research:

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

  2. Valuation: What is MBAPL 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 MBAPL is currently mispriced by the market.

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

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