Attractive stocks have exceptional fundamentals. In the case of Aries Agro Limited (NSE:ARIES), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Aries Agro here.

Undervalued with adequate balance sheet

ARIES is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that ARIES manages its cash and cost levels well, which is a key determinant of the company’s health. ARIES's has produced operating cash levels of 0.26x total debt over the past year, which implies that ARIES's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. ARIES is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ARIES's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the materials industry, ARIES is also trading below its peers, relative to earnings generated. This further reaffirms that ARIES is potentially undervalued.

Next Steps:

For Aries Agro, there are three key aspects you should further research:

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

2. Historical Performance: What has ARIES'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.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ARIES? 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.