In This Article:
I’ve been keeping an eye on Insecticides (India) Limited (NSE:INSECTICID) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe INSECTICID has a lot to offer. Basically, it is a financially-sound company with a a great history of performance, trading at a discount. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Insecticides (India) here.
Flawless balance sheet with solid track record
Over the past year, INSECTICID has grown its earnings by 41%, with its most recent figure exceeding its annual average over the past five years. Not only did INSECTICID outperformed its past performance, its growth also surpassed the Chemicals industry expansion, which generated a 22% earnings growth. This is what investors like to see! INSECTICID is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that INSECTICID has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. INSECTICID’s has produced operating cash levels of 1.59x total debt over the past year, which implies that INSECTICID’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
INSECTICID is currently trading at a price-to-equity ratio of 10.08x relative to the industry ratio of 16.68x and market ratio of 17.53x, so potential investors can purchase the stock below its value.
Next Steps:
For Insecticides (India), there are three essential aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for INSECTICID’s future growth? Take a look at our free research report of analyst consensus for INSECTICID’s outlook.
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Dividend Income vs Capital Gains: Does INSECTICID return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from INSECTICID as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of INSECTICID? 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.