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I've been keeping an eye on Swaraj Engines Limited (NSE:SWARAJENG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SWARAJENG has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Swaraj Engines here.
Flawless balance sheet with proven track record and pays a dividend
SWARAJENG has a strong track record of performance. In the previous year, SWARAJENG delivered an impressive double-digit return of 35% Not surprisingly, SWARAJENG outperformed its industry which returned 11%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. SWARAJENG'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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. SWARAJENG currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
SWARAJENG is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
Next Steps:
For Swaraj Engines, I've put together three pertinent factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for SWARAJENG’s future growth? Take a look at our free research report of analyst consensus for SWARAJENG’s outlook.
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Valuation: What is SWARAJENG 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 SWARAJENG 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 SWARAJENG? 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.