Analyzing M K Proteins Limited’s (NSEI:MKPL) 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 MKPL’s recent performance announced on 31 March 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for MKPL
How MKPL fared against its long-term earnings performance and its industry
I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to examine many different companies on a similar basis, using the most relevant data points. For M. K. Proteins, the latest twelve-month earnings is ₹9.9M, which, against last year’s level, has increased by 36.54%. Since these figures may be fairly short-term, I have computed an annualized five-year value for MKPL’s earnings, which stands at ₹7.1M. This means generally, M. K. Proteins has been able to increasingly raise its earnings over the past few years as well.
How has it been able to do this? Let’s take a look at if it is merely due to an industry uplift, or if M. K. Proteins has seen some company-specific growth. Over the past few years, M. K. Proteins grew its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Viewing growth from a sector-level, the IN food products industry has been growing its average earnings by double-digit 26.89% over the past year, and 14.42% over the previous few years. This shows that whatever uplift the industry is benefiting from, M. K. Proteins is able to amplify this to its advantage.
What does this mean?
M. K. Proteins’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While M. K. Proteins 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 M. K. Proteins to get a better picture of the stock by looking at:
1. Financial Health: Is MKPL’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.
2. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.