Amrutanjan Health Care Limited (NSE:AMRUTANJAN): Commentary On Fundamentals

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Amrutanjan Health Care Limited (NSE:AMRUTANJAN) due to its excellent fundamentals in more than one area. AMRUTANJAN is a financially-robust , dividend-paying company with a strong track record of performance. Below is a brief commentary 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 Amrutanjan Health Care here.

Flawless balance sheet with proven track record and pays a dividend

AMRUTANJAN delivered a bottom-line expansion of 28% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did AMRUTANJAN outperformed its past performance, its growth also surpassed the Pharmaceuticals industry expansion, which generated a 16% earnings growth. This is an notable feat for the company. AMRUTANJAN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AMRUTANJAN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Investors should not worry about AMRUTANJAN’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NSEI:AMRUTANJAN Income Statement, October 9th 2019
NSEI:AMRUTANJAN Income Statement, October 9th 2019

For those seeking income streams from their portfolio, AMRUTANJAN is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 0.6%.

NSEI:AMRUTANJAN Historical Dividend Yield, October 9th 2019
NSEI:AMRUTANJAN Historical Dividend Yield, October 9th 2019

Next Steps:

For Amrutanjan Health Care, I've compiled three fundamental factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for AMRUTANJAN’s future growth? Take a look at our free research report of analyst consensus for AMRUTANJAN’s outlook.

  2. Valuation: What is AMRUTANJAN 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 AMRUTANJAN is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMRUTANJAN? 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 editorial-team@simplywallst.com. 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.