Measuring Anjani Portland Cement Limited’s (NSEI:APCL) track record of past performance is a valuable exercise for investors. It allows 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 APCL’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. View our latest analysis for Anjani Portland Cement

Was APCL’s recent earnings decline indicative of a tough track record?

For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to examine various companies on a more comparable basis, using the most relevant data points. For Anjani Portland Cement, its most recent trailing-twelve-month earnings is ₹267.73M, which, in comparison to the previous year’s figure, has taken a dive by a large -31.95%. Since these figures may be somewhat nearsighted, I have calculated an annualized five-year value for APCL’s earnings, which stands at ₹159.22M This means although earnings growth was negative against the previous year, over the past couple of years, Anjani Portland Cement’s earnings have been rising on average.

What’s the driver of this growth? Let’s take a look at if it is solely due to an industry uplift, or if Anjani Portland Cement has seen some company-specific growth. In the past couple of years, Anjani Portland Cement grew its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Looking at growth from a sector-level, the IN basic materials industry has been growing its average earnings by double-digit 21.55% in the prior year, and a more muted 6.26% over the previous five years. This suggests that any uplift the industry is profiting from, Anjani Portland Cement has not been able to leverage it as much as its industry peers.

What does this mean?

Though Anjani Portland Cement’s past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have volatile earnings, can have many factors influencing its business. You should continue to research Anjani Portland Cement to get a better picture of the stock by looking at:

• 1. Financial Health: Is APCL’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.

• 2. 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 31 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.