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For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Container Corporation of India Limited (NSEI:CONCOR) useful as an attempt to give more color around how Container of India is currently performing. View our latest analysis for Container of India
Were CONCOR’s earnings stronger than its past performances 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 allows me to analyze many different companies on a similar basis, using new information. For Container of India, its most recent bottom-line (trailing twelve month) is ₹10.64B, which compared to the previous year’s level, has jumped up by 24.23%. Since these figures may be fairly short-term, I have calculated an annualized five-year figure for CONCOR’s earnings, which stands at ₹9.54B This means that, on average, Container of India has been able to gradually grow its earnings over the past few years as well.
How has it been able to do this? Well, let’s take a look at whether it is merely because of industry tailwinds, or if Container of India has experienced some company-specific growth. The climb in earnings seems to be bolstered by a solid top-line increase overtaking its growth rate of costs. Though this brought about a margin contraction, it has made Container of India more profitable. Looking at growth from a sector-level, the IN transportation industry has been growing its average earnings by double-digit 31.35% in the past twelve months, and a more subdued 8.46% over the past five. This shows that whatever uplift the industry is profiting from, Container of India has not been able to realize the gains unlike its industry peers.
What does this mean?
Though Container of India’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Container of India gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Container of India 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 CONCOR’s future growth? Take a look at our free research report of analyst consensus for CONCOR’s outlook.
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Financial Health: Is CONCOR’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 31 March 2018. 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.