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Today I will take a look at Laxmi Cotspin Limited's (NSE:LAXMICOT) most recent earnings update (31 March 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the luxury industry performed. As an investor, I find it beneficial to assess LAXMICOT’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
Check out our latest analysis for Laxmi Cotspin
Were LAXMICOT's earnings stronger than its past performances and the industry?
LAXMICOT's trailing twelve-month earnings (from 31 March 2019) of ₹37m has jumped 42% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 0.04%, indicating the rate at which LAXMICOT is growing has accelerated. How has it been able to do this? Let's see whether it is solely due to industry tailwinds, or if Laxmi Cotspin has seen some company-specific growth.
In terms of returns from investment, Laxmi Cotspin has fallen short of achieving a 20% return on equity (ROE), recording 7.8% instead. Furthermore, its return on assets (ROA) of 6.3% is below the IN Luxury industry of 6.3%, indicating Laxmi Cotspin's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Laxmi Cotspin’s debt level, has increased over the past 3 years from 11% to 11%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 91% to 90% over the past 5 years.
What does this mean?
Laxmi Cotspin'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 Laxmi Cotspin gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Laxmi Cotspin 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 LAXMICOT’s future growth? Take a look at our free research report of analyst consensus for LAXMICOT’s outlook.
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Financial Health: Are LAXMICOT’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.