In This Article:
Measuring Visagar Polytex Limited’s (NSE:VIVIDHA) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess VIVIDHA’s recent performance announced on 30 September 2018 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for Visagar Polytex
Did VIVIDHA beat its long-term earnings growth trend and its industry?
VIVIDHA’s trailing twelve-month earnings (from 30 September 2018) of ₹15m has increased by 9.8% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -7.6%, indicating the rate at which VIVIDHA is growing has accelerated. What’s enabled this growth? Let’s take a look at whether it is merely owing to an industry uplift, or if Visagar Polytex has experienced some company-specific growth.
In terms of returns from investment, Visagar Polytex has fallen short of achieving a 20% return on equity (ROE), recording 5.3% instead. However, its return on assets (ROA) of 5.8% exceeds the IN Luxury industry of 5.7%, indicating Visagar Polytex has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Visagar Polytex’s debt level, has declined over the past 3 years from 13% to 11%.
What does this mean?
Visagar Polytex’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Visagar Polytex to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for VIVIDHA’s future growth? Take a look at our free research report of analyst consensus for VIVIDHA’s outlook.
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Financial Health: Are VIVIDHA’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 30 September 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.