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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on InterGlobe Aviation Limited (NSE:INDIGO) due to its excellent fundamentals in more than one area. INDIGO is a company with great financial health as well as a a strong 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, read the full report on InterGlobe Aviation here.
Flawless balance sheet with solid track record
INDIGO delivered a bottom-line expansion of 35% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 32% return to shareholders, which is what investors like to see! INDIGO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that INDIGO has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. INDIGO seems to have put its debt to good use, generating operating cash levels of 1.59x 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.
For InterGlobe Aviation, there are three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for INDIGO’s future growth? Take a look at our free research report of analyst consensus for INDIGO’s outlook.
- Valuation: What is INDIGO 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 INDIGO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of INDIGO? 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 email@example.com.