Assessing L.G. Balakrishnan & Bros Limited's (NSE:LGBBROSLTD) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess LGBBROSLTD's recent performance announced on 31 March 2019 and evaluate these figures to its longer term trend and industry movements.

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Did LGBBROSLTD beat its long-term earnings growth trend and its industry?

LGBBROSLTD's trailing twelve-month earnings (from 31 March 2019) of ₹996m has jumped 16% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.9%, indicating the rate at which LGBBROSLTD is growing has accelerated. How has it been able to do this? Let's take a look at if it is solely because of industry tailwinds, or if L.G. Balakrishnan & Bros has seen some company-specific growth.

In terms of returns from investment, L.G. Balakrishnan & Bros has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 9.1% exceeds the IN Machinery industry of 7.4%, indicating L.G. Balakrishnan & Bros has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for L.G. Balakrishnan & Bros’s debt level, has increased over the past 3 years from 17% to 17%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 47% to 26% over the past 5 years.

What does this mean?

L.G. Balakrishnan & Bros's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as L.G. Balakrishnan & Bros gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research L.G. Balakrishnan & Bros to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for LGBBROSLTD’s future growth? Take a look at our free research report of analyst consensus for LGBBROSLTD’s outlook.

2. Financial Health: Are LGBBROSLTD’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.

3. 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.