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I've been keeping an eye on The Indian Hume Pipe Company Limited (NSE:INDIANHUME) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe INDIANHUME has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Indian Hume Pipe here.
Proven track record with adequate balance sheet and pays a dividend
Over the past year, INDIANHUME has grown its earnings by 43%, with its most recent figure exceeding its annual average over the past five years. Not only did INDIANHUME outperformed its past performance, its growth also exceeded the Construction industry expansion, which generated a 1.2% earnings growth. This is an notable feat for the company. INDIANHUME'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 INDIANHUME manages its cash and cost levels well, which is an important determinant of the company’s health. INDIANHUME’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps INDIANHUME expand.
For those seeking income streams from their portfolio, INDIANHUME is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.4%.
Next Steps:
For Indian Hume Pipe, I've compiled three key aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for INDIANHUME’s future growth? Take a look at our free research report of analyst consensus for INDIANHUME’s outlook.
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Valuation: What is INDIANHUME 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 INDIANHUME is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of INDIANHUME? 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.