Manali Petrochemicals Limited (

NSE:MANALIPETC

) is gu lingfei married at first sighta company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of MANALIPETC, it is a financially-healthy company with a a great history of performance, trading at a discount. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the

report on Manali Petrochemicals here

.

Excellent balance sheet and good value

MANALIPETC delivered a bottom-line expansion of 46% 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, MANALIPETC also outperformed its industry, which delivered a growth of 15%. This is an notable feat for the company. MANALIPETC’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MANALIPETC appears to have made good use of debt, producing operating cash levels of 2.08x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NSEI:MANALIPETC Income Statement, March 1st 2019

MANALIPETC’s shares are now trading at a price below its true value based on its PE ratio of 7.14x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.

NSEI:MANALIPETC Price Estimation Relative to Market, March 1st 2019

Next Steps:

For Manali Petrochemicals, I’ve put together three important factors you should further research:

Future Outlook

: What are well-informed industry analysts predicting for MANALIPETC’s future growth? Take a look at our

free research report of analyst consensus

for MANALIPETC’s outlook.

Dividend Income vs Capital Gains

: Does MANALIPETC 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 MANALIPETC as an investment.

Other Attractive Alternatives

: Are there other well-rounded stocks you could be holding instead of MANALIPETC? Explore

our interactive list of stocks with large potential

to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at

[email protected]

. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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