As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON), it is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Crompton Greaves Consumer Electricals here.
Solid track record with adequate balance sheet
Over the past few years, CROMPTON has demonstrated a proven ability to generate robust returns of 41% Not surprisingly, CROMPTON outperformed its industry which returned 11%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. CROMPTON is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that CROMPTON manages its cash and cost levels well, which is an important determinant of the company’s health. CROMPTON seems to have put its debt to good use, generating operating cash levels of 0.9x 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.
Next Steps:
For Crompton Greaves Consumer Electricals, I’ve compiled three key aspects you should further examine:
- 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.
- 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.
- 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!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.