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I've been keeping an eye on Lexus Granito (India) Limited (NSE:LEXUS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe LEXUS has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. 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 Lexus Granito (India) here.

Undervalued with adequate balance sheet

LEXUS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. LEXUS's has produced operating cash levels of 0.71x total debt over the past year, which implies that LEXUS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. LEXUS is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of LEXUS's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the consumer durables industry, LEXUS is also trading below its peers, relative to earnings generated. This further reaffirms that LEXUS is potentially undervalued.

Next Steps:

For Lexus Granito (India), I've compiled three relevant aspects you should further research:

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

2. Historical Performance: What has LEXUS'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.

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