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Analyzing Apcotex Industries Limited's (NSEI:APCOTEXIND) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess APCOTEXIND's recent performance announced on 30 June 2019 and compare these figures to its long-term trend and industry movements.
Check out our latest analysis for Apcotex Industries
Did APCOTEXIND beat its long-term earnings growth trend and its industry?
APCOTEXIND's trailing twelve-month earnings (from 30 June 2019) of ₹467m has increased by 4.6% 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 16%, indicating the rate at which APCOTEXIND is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s occurring with margins and whether the whole industry is feeling the heat.
In terms of returns from investment, Apcotex Industries has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 12% exceeds the IN Chemicals industry of 8.7%, indicating Apcotex Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Apcotex Industries’s debt level, has increased over the past 3 years from 16% to 20%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 56% to 1.4% over the past 5 years.
What does this mean?
Though Apcotex Industries's past data is helpful, it is only one aspect of my investment thesis. While Apcotex Industries has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Apcotex Industries 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 APCOTEXIND’s future growth? Take a look at our free research report of analyst consensus for APCOTEXIND’s outlook.
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Financial Health: Are APCOTEXIND’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 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.