Why I Like Anjani Portland Cement Limited (NSE:APCL)

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Anjani Portland Cement Limited (NSE:APCL) 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 APCL, it is a company with great financial health as well as a 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 Anjani Portland Cement here.

Flawless balance sheet with proven track record

In the previous year, APCL has ramped up its bottom line by 52%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, APCL also outperformed its industry, which delivered a growth of 22%. This paints a buoyant picture for the company. APCL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that APCL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Investors should not worry about APCL’s debt levels because the company has none! This means it is running its business only on equity capital 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:APCL Income Statement, September 11th 2019
NSEI:APCL Income Statement, September 11th 2019

Next Steps:

For Anjani Portland Cement, I've compiled three important aspects you should look at:

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

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

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

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