An Examination Of Vesuvius India Limited (NSE:VESUVIUS)

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Vesuvius India Limited (NSE:VESUVIUS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of VESUVIUS, it is a financially-robust company with an impressive track record of dividend payments and a buoyant future outlook. 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 Vesuvius India here.

Flawless balance sheet with reasonable growth potential and pays a dividend

VESUVIUS'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 a key determinant of the company’s health. Investors should not worry about VESUVIUS’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. 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:VESUVIUS Past and Future Earnings, July 4th 2019
NSEI:VESUVIUS Past and Future Earnings, July 4th 2019

VESUVIUS is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NSEI:VESUVIUS Historical Dividend Yield, July 4th 2019
NSEI:VESUVIUS Historical Dividend Yield, July 4th 2019

Next Steps:

For Vesuvius India, I've put together three fundamental aspects you should further examine:

  1. Historical Performance: What has VESUVIUS'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.

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

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