In This Article:
In this article, I will take a look at Bajaj Holdings & Investment Limited’s (NSE:BAJAJHLDNG) most recent earnings update (30 September 2018) and compare these latest figures against its performance over the past few years, along with how the rest of BAJAJHLDNG’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
See our latest analysis for Bajaj Holdings & Investment
Did BAJAJHLDNG beat its long-term earnings growth trend and its industry?
BAJAJHLDNG’s trailing twelve-month earnings (from 30 September 2018) of ₹34b has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 11%, indicating the rate at which BAJAJHLDNG is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only owing to an industry uplift, or if Bajaj Holdings & Investment has seen some company-specific growth.
In terms of returns from investment, Bajaj Holdings & Investment has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 13% exceeds the IN Diversified Financial industry of 2.0%, indicating Bajaj Holdings & Investment has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bajaj Holdings & Investment’s debt level, has increased over the past 3 years from 2.7% to 3.5%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Bajaj Holdings & Investment gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Bajaj Holdings & Investment 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 BAJAJHLDNG’s future growth? Take a look at our free research report of analyst consensus for BAJAJHLDNG’s outlook.
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Financial Health: Are BAJAJHLDNG’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 September 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.