In This Article:
Attractive stocks have exceptional fundamentals. In the case of Himadri Speciality Chemical Limited (NSE:HSCL), there's is a financially-robust company with a great track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Himadri Speciality Chemical here.
Flawless balance sheet and undervalued
HSCL delivered a satisfying double-digit returns of 14% in the most recent year Unsurprisingly, HSCL surpassed the industry return of 8.7%, which gives us more confidence of the company's capacity to drive earnings going forward. HSCL'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 implies that HSCL manages its cash and cost levels well, which is an important determinant of the company’s health. HSCL seems to have put its debt to good use, generating operating cash levels of 0.52x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
HSCL is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the chemicals industry, HSCL is also trading below its peers, relative to earnings generated. This further reaffirms that HSCL is potentially undervalued.
Next Steps:
For Himadri Speciality Chemical, I've put together three important aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for HSCL’s future growth? Take a look at our free research report of analyst consensus for HSCL’s outlook.
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Dividend Income vs Capital Gains: Does HSCL 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 HSCL as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HSCL? 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.