Measuring Krishana Phoschem Limited’s (NSE:KRISHANA) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess KRISHANA’s recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements.
Check out our latest analysis for Krishana Phoschem
Were KRISHANA’s earnings stronger than its past performances and the industry?
KRISHANA’s trailing twelve-month earnings (from 31 March 2018) of ₹35m has increased by 7.3% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -16%, indicating the rate at which KRISHANA is growing has accelerated. How has it been able to do this? Let’s take a look at whether it is solely attributable to industry tailwinds, or if Krishana Phoschem has experienced some company-specific growth.
In terms of returns from investment, Krishana Phoschem has fallen short of achieving a 20% return on equity (ROE), recording 3.7% instead. Furthermore, its return on assets (ROA) of 6.1% is below the IN Chemicals industry of 8.3%, indicating Krishana Phoschem’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Krishana Phoschem’s debt level, has increased over the past 3 years from 7.0% to 9.5%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 76% to 44% over the past 5 years.
What does this mean?
Krishana Phoschem’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Recent positive growth isn’t always indicative of a continued optimistic outlook. There may be variables that are influencing the entire industry hence the high industry growth rate over the same time frame. I suggest you continue to research Krishana Phoschem to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for KRISHANA’s future growth? Take a look at our free research report of analyst consensus for KRISHANA’s outlook.
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Financial Health: Are KRISHANA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.