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Examining Asian Granito India Limited’s (NSE:ASIANTILES) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ASIANTILES’s latest performance announced on 30 June 2018 and weigh these figures against its longer term trend and industry movements.
View our latest analysis for Asian Granito India
How Did ASIANTILES’s Recent Performance Stack Up Against Its Past?
ASIANTILES’s trailing twelve-month earnings (from 30 June 2018) of ₹481m has jumped 16% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 26%, indicating the rate at which ASIANTILES is growing has slowed down. To understand what’s happening, let’s examine what’s going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Asian Granito India has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 6.6% is below the IN Building industry of 6.8%, indicating Asian Granito India’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Asian Granito India’s debt level, has increased over the past 3 years from 7.5% to 13%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 95% to 73% over the past 5 years.
What does this mean?
Though Asian Granito India’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Asian Granito India gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Asian Granito India to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for ASIANTILES’s future growth? Take a look at our free research report of analyst consensus for ASIANTILES’s outlook.
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Financial Health: Are ASIANTILES’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.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.