Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Kothari Petrochemicals Limited (NSE:KOTHARIPET), it is a company with great financial health as well as a a strong track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Kothari Petrochemicals here.

Excellent balance sheet with proven track record

Over the past year, KOTHARIPET has grown its earnings by 27%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, KOTHARIPET also outperformed its industry, which delivered a growth of 13%. This is what investors like to see! With a debt-to-equity ratio of 26%, KOTHARIPET’s debt level is acceptable. This means that KOTHARIPET’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. KOTHARIPET seems to have put its debt to good use, generating operating cash levels of 0.71x 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.

Next Steps:

For Kothari Petrochemicals, I've put together three fundamental factors you should look at:

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

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

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