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Examining I G Petrochemicals Limited’s (NSE:IGPL) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess IGPL’s latest performance announced on 31 March 2018 and compare these figures to its longer term trend and industry movements.
View our latest analysis for I G Petrochemicals
How Did IGPL’s Recent Performance Stack Up Against Its Past?
IGPL’s trailing twelve-month earnings (from 31 March 2018) of ₹1.5b has jumped 44% 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 82%, indicating the rate at which IGPL 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 rest of the industry is facing the same headwind.
In terms of returns from investment, I G Petrochemicals has invested its equity funds well leading to a 28% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 18% exceeds the IN Chemicals industry of 8.1%, indicating I G Petrochemicals has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for I G Petrochemicals’s debt level, has increased over the past 3 years from 19% to 38%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 67% to 18% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While I G Petrochemicals has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research I G Petrochemicals 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 IGPL’s future growth? Take a look at our free research report of analyst consensus for IGPL’s outlook.
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Financial Health: Are IGPL’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.