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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Lexus Granito (India) Limited (NSE:LEXUS) due to its excellent fundamentals in more than one area. LEXUS is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Lexus Granito (India) here.

Undervalued with adequate balance sheet

LEXUS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that LEXUS manages its cash and cost levels well, which is an important determinant of the company’s health. LEXUS appears to have made good use of debt, producing operating cash levels of 0.71x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. LEXUS's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of LEXUS's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, LEXUS's share price is trading below the group's average. This further reaffirms that LEXUS is potentially undervalued.

Next Steps:

For Lexus Granito (India), there are three essential factors you should further examine:

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

2. Historical Performance: What has LEXUS'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.

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