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 N R Agarwal Industries Limited (NSE:NRAGRINDQ), it is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on N R Agarwal Industries here.
Adequate balance sheet with proven track record
NRAGRINDQ delivered a satisfying double-digit returns of 29% in the most recent year. Not surprisingly, NRAGRINDQ outperformed its industry which returned 12%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. NRAGRINDQ'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 NRAGRINDQ manages its cash and cost levels well, which is a key determinant of the company’s health. NRAGRINDQ appears to have made good use of debt, producing operating cash levels of 0.46x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For N R Agarwal Industries, there are three essential aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for NRAGRINDQ’s future growth? Take a look at our free research report of analyst consensus for NRAGRINDQ’s outlook.
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Valuation: What is NRAGRINDQ 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 NRAGRINDQ 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 NRAGRINDQ? 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.