In This Article:
Attractive stocks have exceptional fundamentals. In the case of Balkrishna Industries Limited (NSE:BALKRISIND), there’s is a financially-healthy company with a a strong history of dividend payments and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, read the full report on Balkrishna Industries here.
Flawless balance sheet with high growth potential and pays a dividend
BALKRISIND is expected to churn out cash in the short term, with its operating cash flow predicted to expand by 80%. This is expected to flow down into an impressive return on equity of 21% over the next couple of years. BALKRISIND’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 BALKRISIND manages its cash and cost levels well, which is a crucial insight into the health of the company. BALKRISIND seems to have put its debt to good use, generating operating cash levels of 0.86x 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.
BALKRISIND is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Balkrishna Industries, I’ve compiled three relevant factors you should further research:
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Historical Performance: What has BALKRISIND’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.
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Valuation: What is BALKRISIND 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 BALKRISIND 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 BALKRISIND? 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.