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 SJVN Limited (NSE:SJVN), it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on SJVN here.
Flawless balance sheet and undervalued
SJVN’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 SJVN manages its cash and cost levels well, which is a crucial insight into the health of the company. SJVN appears to have made good use of debt, producing operating cash levels of 0.74x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. SJVN’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if SJVN’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, SJVN’s share price is trading below the group’s average. This bolsters the proposition that SJVN’s price is currently discounted.
For SJVN, there are three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SJVN’s future growth? Take a look at our free research report of analyst consensus for SJVN’s outlook.
- Historical Performance: What has SJVN’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SJVN? 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 firstname.lastname@example.org.