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Looking at Allcargo Logistics Limited's (NSE:ALLCARGO) earnings update on 31 March 2019, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 5.9% in the upcoming year compared with the past 5-year average growth rate of -0.6%. With trailing-twelve-month net income at current levels of ₹2.4b, we should see this rise to ₹2.6b in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Allcargo Logistics
What can we expect from Allcargo Logistics in the longer term?
The 5 analysts covering ALLCARGO view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of ALLCARGO's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of ₹2.4b and the final forecast of ₹4.1b by 2022, the annual rate of growth for ALLCARGO’s earnings is 14%. EPS reaches ₹16.99 in the final year of forecast compared to the current ₹9.85 EPS today. Margins are currently sitting at 3.5%, which is expected to expand to 4.3% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Allcargo Logistics, there are three fundamental aspects you should further examine:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is Allcargo Logistics worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Allcargo Logistics is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Allcargo Logistics? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.