Should You Consider Infibeam Avenues Limited (NSE:INFIBEAM)?

In This Article:

Attractive stocks have exceptional fundamentals. In the case of Infibeam Avenues Limited (NSE:INFIBEAM), there's is a financially-robust company with an impressive track record and a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Infibeam Avenues here.

Flawless balance sheet with high growth potential

Over the past few years, INFIBEAM has demonstrated a proven ability to generate robust returns of 4.4% Unsurprisingly, INFIBEAM surpassed the industry return of 3.4%, which gives us more confidence of the company's capacity to drive earnings going forward.

NSEI:INFIBEAM Past and Future Earnings, August 13th 2019
NSEI:INFIBEAM Past and Future Earnings, August 13th 2019

INFIBEAM'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. INFIBEAM appears to have made good use of debt, producing operating cash levels of 7.28x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NSEI:INFIBEAM Historical Debt, August 13th 2019
NSEI:INFIBEAM Historical Debt, August 13th 2019

Next Steps:

For Infibeam Avenues, I've put together three pertinent aspects you should further research:

  1. Valuation: What is INFIBEAM 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 INFIBEAM is currently mispriced by the market.

  2. Dividend Income vs Capital Gains: Does INFIBEAM 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 INFIBEAM as an investment.

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