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Measuring Lumax Industries Limited's (NSE:LUMAXIND) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess LUMAXIND's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.

See our latest analysis for Lumax Industries

Could LUMAXIND beat the long-term trend and outperform its industry?

LUMAXIND's trailing twelve-month earnings (from 31 March 2019) of ₹1.0b has jumped 45% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 36%, indicating the rate at which LUMAXIND is growing has accelerated. What's enabled this growth? Let's see if it is only due to industry tailwinds, or if Lumax Industries has seen some company-specific growth.

In terms of returns from investment, Lumax Industries has invested its equity funds well leading to a 24% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 10% exceeds the IN Auto Components industry of 7.9%, indicating Lumax Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Lumax Industries’s debt level, has increased over the past 3 years from 16% to 19%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 91% to 32% over the past 5 years.

What does this mean?

Lumax Industries'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 suggest you continue to research Lumax Industries to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for LUMAXIND’s future growth? Take a look at our free research report of analyst consensus for LUMAXIND’s outlook.

2. Financial Health: Are LUMAXIND’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.

3. 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.