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Brief Commentary On IMP Powers Limited's (NSE:INDLMETER) Fundamentals

Simply Wall St

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IMP Powers Limited (NSE:INDLMETER) 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 INDLMETER, it is a financially-sound company with a a strong history of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on IMP Powers here.

Undervalued with proven track record

INDLMETER delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, INDLMETER also outperformed its industry, which delivered a growth of 16%. This is what investors like to see! INDLMETER is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that INDLMETER manages its cash and cost levels well, which is a crucial insight into the health of the company. INDLMETER appears to have made good use of debt, producing operating cash levels of 0.27x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NSEI:INDLMETER Income Statement, May 20th 2019

INDLMETER's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if INDLMETER's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the electrical industry, INDLMETER is also trading below its peers, relative to earnings generated. This further reaffirms that INDLMETER is potentially undervalued.

NSEI:INDLMETER Price Estimation Relative to Market, May 20th 2019

Next Steps:

For IMP Powers, I've compiled three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for INDLMETER’s future growth? Take a look at our free research report of analyst consensus for INDLMETER’s outlook.
  2. Dividend Income vs Capital Gains: Does INDLMETER return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from INDLMETER as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of INDLMETER? 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.