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Looking at V2 Retail Limited's (NSE:V2RETAIL) earnings update in March 2019, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 37% in the upcoming year compared with the past 5-year average growth rate of 22%. Currently with trailing-twelve-month earnings of ₹205m, we can expect this to reach ₹281m by 2020. Below is a brief commentary around V2 Retail's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.

Check out our latest analysis for V2 Retail

What can we expect from V2 Retail in the longer term?

The longer term view from the 2 analysts covering V2RETAIL is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for V2RETAIL, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

By 2022, V2RETAIL's earnings should reach ₹376m, from current levels of ₹205m, resulting in an annual growth rate of 19%. EPS reaches ₹11 in the final year of forecast compared to the current ₹6.02 EPS today. In 2022, V2RETAIL's profit margin will have expanded from 2.7% to 3.3%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For V2 Retail, I've compiled three relevant aspects you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is V2 Retail 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 V2 Retail is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of V2 Retail? Explore our interactive list of stocks with large growth 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.