Attractive stocks have exceptional fundamentals. In the case of ITD Cementation India Limited (NSE:ITDCEM), there’s is a financially-sound company with a strong track record and a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on ITD Cementation India here.

Solid track record with reasonable growth potential

ITDCEM is an attractive stock for growth-seeking investors, with an expected earnings growth of 38% in the upcoming year, bolstered by its outstanding cash-generating ability, as analysts predict its operating cash flows will more than double over the same time period. This is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. ITDCEM delivered a bottom-line expansion of 60% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ITDCEM also outperformed its industry, which delivered a growth of 36%. This is an optimistic signal for the future.

ITDCEM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ITDCEM manages its cash and cost levels well, which is an important determinant of the company’s health. Debt funding requires timely payments on interest to lenders. ITDCEM’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.

Next Steps:

For ITD Cementation India, there are three relevant aspects you should further examine:

1. Valuation: What is ITDCEM 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 ITDCEM is currently mispriced by the market.

2. Dividend Income vs Capital Gains: Does ITDCEM 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 ITDCEM as an investment.

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