In This Article:
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) due to its excellent fundamentals in more than one area. CROMPTON is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Crompton Greaves Consumer Electricals here.
Solid track record with adequate balance sheet
CROMPTON has a strong track record of performance. In the previous year, CROMPTON delivered an impressive double-digit return of 43% Not surprisingly, CROMPTON outperformed its industry which returned 13%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. CROMPTON’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 indicates that CROMPTON has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CROMPTON’s has produced operating cash levels of 0.9x total debt over the past year, which implies that CROMPTON’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Crompton Greaves Consumer Electricals, I’ve put together three key aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for CROMPTON’s future growth? Take a look at our free research report of analyst consensus for CROMPTON’s outlook.
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Valuation: What is CROMPTON 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 CROMPTON 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 CROMPTON? 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.