A Look At S Chand and Company Limited's (NSE:SCHAND) Exceptional Fundamentals

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I've been keeping an eye on S Chand and Company Limited (NSE:SCHAND) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SCHAND has a lot to offer. Basically, it is a financially-sound company with a an impressive history of performance, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on S Chand here.

Solid track record with excellent balance sheet

SCHAND delivered a bottom-line expansion of 37% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, SCHAND also outperformed its industry, which delivered a growth of 14%. This is an notable feat for the company. SCHAND'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 SCHAND manages its cash and cost levels well, which is a crucial insight into the health of the company. With a debt-to-equity ratio of 23%, SCHAND’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.

SCHAND's share price is trading below its true value according to its price-to-earnings ratio of 7.85x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.

Next Steps:

For S Chand, I've compiled three important factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for SCHAND’s future growth? Take a look at our free research report of analyst consensus for SCHAND’s outlook.
2. Dividend Income vs Capital Gains: Does SCHAND return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from SCHAND as an investment.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SCHAND? 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.