The most recent earnings update TAKE Solutions Limited’s (NSE:TAKE) released in March 2018 signalled that the business experienced a strong tailwind, leading to a double-digit earnings growth of 22.75%. Below, I’ve laid out key numbers on how market analysts view TAKE Solutions’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for TAKE Solutions

Analysts’ outlook for next year seems positive, with earnings expanding by a significant 52.74%. This strong growth in earnings is expected to continue, bringing the bottom line up to ₹4.10b by 2021.

While it is informative understanding the growth year by year relative to today’s value, it may be more beneficial determining the rate at which the company is moving every year, on average. The benefit of this approach is that we can get a bigger picture of the direction of TAKE Solutions’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 29.01%. This means that, we can expect TAKE Solutions will grow its earnings by 29.01% every year for the next couple of years.

Next Steps:

For TAKE Solutions, I’ve compiled three essential factors you should further research:

1. 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.

2. Valuation: What is TAKE 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 TAKE is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TAKE? 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 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.