Should You Consider Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT)?

Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CHAMBLFERT, it is a financially-sound , dividend-paying company with a an impressive history 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, read the full report on Chambal Fertilisers and Chemicals here.

Established dividend payer with proven track record

In the previous year, CHAMBLFERT has ramped up its bottom line by 29%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 20%, which paints a buoyant picture for the company. CHAMBLFERT’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 CHAMBLFERT has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Debt funding requires timely payments on interest to lenders. CHAMBLFERT’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

NSEI:CHAMBLFERT Income Statement Export November 26th 18
NSEI:CHAMBLFERT Income Statement Export November 26th 18

Income investors would also be happy to know that CHAMBLFERT is a great dividend company, with a current yield standing at 1.3%. CHAMBLFERT has also been regularly increasing its dividend payments to shareholders over the past decade.

NSEI:CHAMBLFERT Historical Dividend Yield November 26th 18
NSEI:CHAMBLFERT Historical Dividend Yield November 26th 18

Next Steps:

For Chambal Fertilisers and Chemicals, there are three important factors you should further examine:

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