Understanding how Bhandari Hosiery Exports Limited (NSEI:BHANDHOS) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how Bhandari Hosiery Exports is doing by comparing its latest earnings with its long-term trend as well as the performance of its luxury industry peers.

View our latest analysis for Bhandari Hosiery Exports

How Well Did BHANDHOS Perform?

BHANDHOS's trailing twelve-month earnings (from 30 June 2019) of ₹56m has jumped 13% 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 14%, indicating the rate at which BHANDHOS is growing has slowed down. What could be happening here? Well, let’s take a look at what’s occurring with margins and whether the rest of the industry is facing the same headwind.

In terms of returns from investment, Bhandari Hosiery Exports has fallen short of achieving a 20% return on equity (ROE), recording 8.1% instead. However, its return on assets (ROA) of 8.4% exceeds the IN Luxury industry of 6.2%, indicating Bhandari Hosiery Exports has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bhandari Hosiery Exports’s debt level, has increased over the past 3 years from 15% to 16%.

What does this mean?

Though Bhandari Hosiery Exports's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Bhandari Hosiery Exports to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for BHANDHOS’s future growth? Take a look at our free research report of analyst consensus for BHANDHOS’s outlook.

2. Financial Health: Are BHANDHOS’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.

3. 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 2019. This may not be consistent with full year annual report figures.

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.

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