How VST Industries Limited (NSE:VSTIND) Could Add Value To Your Portfolio

Attractive stocks have exceptional fundamentals. In the case of VST Industries Limited (NSE:VSTIND), there's is a financially-sound , dividend-paying company with a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on VST Industries here.

Flawless balance sheet with solid track record and pays a dividend

In the previous year, VSTIND has ramped up its bottom line by 24.54%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 34.93%. which is an notable feat for the company. VSTIND'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 VSTIND manages its cash and cost levels well, which is an important determinant of the company’s health. VSTIND currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

Income investors would also be happy to know that VSTIND is one of the highest dividend payers in the market, with current dividend yield standing at 2.63%. VSTIND has also been regularly increasing its dividend payments to shareholders over the past decade.

Next Steps:

For VST Industries, I've put together three essential factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for VSTIND’s future growth? Take a look at our free research report of analyst consensus for VSTIND’s outlook.
2. Valuation: What is VSTIND 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 VSTIND is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VSTIND? 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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.