I G Petrochemicals Limited (NSE:IGPL) 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 IGPL, it is a financially-robust , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on I G Petrochemicals here.

Flawless balance sheet with solid track record and pays a dividend

IGPL has a strong track record of performance. In the previous year, IGPL delivered an impressive double-digit return of 28% Unsurprisingly, IGPL surpassed the Chemicals industry return of 13%, which gives us more confidence of the company’s capacity to drive earnings going forward. IGPL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that IGPL manages its cash and cost levels well, which is a key determinant of the company’s health. IGPL appears to have made good use of debt, producing operating cash levels of 2.1x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

For those seeking income streams from their portfolio, IGPL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.0%.

Next Steps:

For I G Petrochemicals, there are three relevant aspects you should look at:

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

2. Valuation: What is IGPL 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 IGPL is currently mispriced by the market.

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