In This Article:
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 Emami Limited (NSE:EMAMILTD), it is a financially-sound company with a an impressive track record of dividend payments and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Emami here.
High growth potential with adequate balance sheet and pays a dividend
With a debt-to-equity ratio of 16.2%, EMAMILTD’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. EMAMILTD’s has produced operating cash levels of 1.8x total debt over the past year, which implies that EMAMILTD’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
EMAMILTD 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 Emami, there are three fundamental aspects you should further examine:
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Historical Performance: What has EMAMILTD’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 EMAMILTD 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 EMAMILTD 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 EMAMILTD? 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.