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The latest earnings announcement Astral Poly Technik Limited (NSE:ASTRAL) released in March 2019 confirmed that the company gained from a robust tailwind, eventuating to a double-digit earnings growth of 12%. Today I want to provide a brief commentary on how market analysts predict Astral Poly Technik's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for Astral Poly Technik
Market analysts' consensus outlook for this coming year seems positive, with earnings climbing by a robust 39%. This growth seems to continue into the following year with rates reaching double digit 78% compared to today’s earnings, and finally hitting ₹3.8b by 2022.
Although it is useful to understand the rate of growth each year relative to today’s level, it may be more valuable to analyze the rate at which the business is moving on average every year. The benefit of this approach is that we can get a bigger picture of the direction of Astral Poly Technik's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 25%. This means, we can anticipate Astral Poly Technik will grow its earnings by 25% every year for the next few years.
Next Steps:
For Astral Poly Technik, there are three essential aspects you should further research:
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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.
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Valuation: What is ASTRAL 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 ASTRAL is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ASTRAL? 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.