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Sandhar Technologies Limited (NSE:SANDHAR) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of SANDHAR, it is a company with great financial health as well as a a great history of performance. 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, read the full report on Sandhar Technologies here.
Excellent balance sheet with solid track record
In the previous year, SANDHAR has ramped up its bottom line by 47%, with its latest earnings level surpassing its average level over the last five years. Not only did SANDHAR outperformed its past performance, its growth also exceeded the Auto Components industry expansion, which generated a 10% earnings growth. This is an optimistic signal for the future. With a debt-to-equity ratio of 37%, SANDHAR’s debt level is acceptable. This implies that SANDHAR has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. SANDHAR appears to have made good use of debt, producing operating cash levels of 0.7x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Sandhar Technologies, I've put together three key factors you should look at:
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Future Outlook: What are well-informed industry analysts predicting for SANDHAR’s future growth? Take a look at our free research report of analyst consensus for SANDHAR’s outlook.
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Valuation: What is SANDHAR 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 SANDHAR 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 SANDHAR? 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.