Examining Jaihind Projects Limited’s (NSEI:JAIHINDPRO) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess JAIHINDPRO’s latest performance announced on 31 March 2017 and weight these figures against its longer term trend and industry movements. View our latest analysis for Jaihind Projects
Did JAIHINDPRO’s recent earnings growth beat the long-term trend and the industry?
I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method enables me to analyze various companies in a uniform manner using the latest information. For Jaihind Projects, its latest earnings (trailing twelve month) is -₹73.7M, which, relative to the previous year’s level, has become less negative. Given that these figures are relatively short-term thinking, I’ve computed an annualized five-year figure for Jaihind Projects’s earnings, which stands at -₹139.8M. This shows that, even though net income is negative, it has become less negative over the years.
Additionally, we can examine Jaihind Projects’s loss by researching what has been happening in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over the last couple of years has been negative at -24.10%. The key to profitability here is to make sure the company’s cost growth is well-managed. Scanning growth from a sector-level, the IN construction and engineering industry has been growing its average earnings by double-digit 13.18% over the past year, and a more muted 2.95% over the past five years. This shows that, though Jaihind Projects is presently running a loss, it may have gained from industry tailwinds, moving earnings towards to right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will happen in the future and when. The most insightful step is to examine company-specific issues Jaihind Projects may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Jaihind Projects to get a better picture of the stock by looking at:
1. Financial Health: Is JAIHINDPRO’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.