A Holistic Look At India Motor Parts and Accessories Limited (NSE:IMPAL)
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India Motor Parts and Accessories Limited (NSE:IMPAL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of IMPAL, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on India Motor Parts and Accessories here.
Flawless balance sheet with proven track record
In the previous year, IMPAL has ramped up its bottom line by 32%, with its latest earnings level surpassing its average level over the last five years. Not only did IMPAL outperformed its past performance, its growth also surpassed the Retail Distributors industry expansion, which generated a 21% earnings growth. This is an optimistic signal for the future. IMPAL'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. IMPAL's has produced operating cash levels of 0.8x total debt over the past year, which implies that IMPAL's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For India Motor Parts and Accessories, there are three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for IMPAL’s future growth? Take a look at our free research report of analyst consensus for IMPAL’s outlook.
Valuation: What is IMPAL 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 IMPAL is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IMPAL? 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.
