In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Himadri Speciality Chemical Limited (NSE:HSCL) due to its excellent fundamentals in more than one area. HSCL is a financially-healthy company with a strong history and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Himadri Speciality Chemical here.
Excellent balance sheet with proven track record
Over the past few years, HSCL has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, HSCL also outperformed its industry, which delivered a growth of 22%. This is an optimistic signal for the future.
HSCL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that HSCL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. HSCL’s has produced operating cash levels of 0.39x total debt over the past year, which implies that HSCL’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Himadri Speciality Chemical, I’ve put together three relevant aspects you should look at:
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Valuation: What is HSCL 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 HSCL is currently mispriced by the market.
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Dividend Income vs Capital Gains: Does HSCL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from HSCL as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HSCL? 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.