Lumax Industries Limited (NSE:LUMAXIND) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of LUMAXIND, it is a company with great financial health as well as a an impressive 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 Lumax Industries here.
Outstanding track record with excellent balance sheet
Over the past year, LUMAXIND has grown its earnings by 71%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 29%. which is what investors like to see! With a debt-to-equity ratio of 32%, LUMAXIND’s debt level is reasonable. This implies that LUMAXIND has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. LUMAXIND appears to have made good use of debt, producing operating cash levels of 1.19x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Lumax Industries, there are three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for LUMAXIND’s future growth? Take a look at our free research report of analyst consensus for LUMAXIND’s outlook.
- Valuation: What is LUMAXIND 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 LUMAXIND is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LUMAXIND? 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.