Should ELGI Equipments Limited (NSE:ELGIEQUIP) Be Your Next Stock Pick?

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ELGI Equipments Limited (NSE:ELGIEQUIP) 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 ELGIEQUIP, it is a financially-robust company with a great track record of dividend payments and a buoyant growth outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on ELGI Equipments here.

Flawless balance sheet with reasonable growth potential and pays a dividend

ELGIEQUIP’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 ELGIEQUIP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ELGIEQUIP appears to have made good use of debt, producing operating cash levels of 0.71x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NSEI:ELGIEQUIP Past and Future Earnings, July 20th 2019
NSEI:ELGIEQUIP Past and Future Earnings, July 20th 2019

Income investors would also be happy to know that ELGIEQUIP is a great dividend company, with a current yield standing at 0.5%. ELGIEQUIP has also been regularly increasing its dividend payments to shareholders over the past decade.

NSEI:ELGIEQUIP Historical Dividend Yield, July 20th 2019
NSEI:ELGIEQUIP Historical Dividend Yield, July 20th 2019

Next Steps:

For ELGI Equipments, there are three pertinent aspects you should further research:

  1. Historical Performance: What has ELGIEQUIP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is ELGIEQUIP 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 ELGIEQUIP is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ELGIEQUIP? 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.