In This Article:
Gujarat Pipavav Port Limited’s (NSE:GPPL) announced its latest earnings update in March 2018, which suggested that the business faced a immense headwind with earnings declining by -21.7%. Below, I’ve laid out key growth figures on how market analysts view Gujarat Pipavav Port’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Gujarat Pipavav Port
Analysts’ outlook for this coming year seems rather muted, with earnings increasing by a single digit 8.7%. The growth outlook in the following year seems much more buoyant with rates generating double digit 37.6% compared to today’s earnings, and finally hitting ₹3.46b by 2021.
Although it is helpful to be aware of the growth rate year by year relative to today’s figure, it may be more insightful to gauge the rate at which the business is rising or falling on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Gujarat Pipavav Port’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 15.4%. This means that, we can presume Gujarat Pipavav Port will grow its earnings by 15.4% every year for the next few years.
Next Steps:
For Gujarat Pipavav Port, I’ve compiled three relevant aspects you should look at:
-
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.
-
Valuation: What is GPPL 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 GPPL is currently mispriced by the market.
-
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GPPL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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.