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Looking at TVS Srichakra Limited’s (NSE:TVSSRICHAK) earnings update in March 2018, analyst forecasts appear to be pessimistic, with earnings expected to decline by -4.4% in the upcoming year relative to the past 5-year average growth rate of 22%. Presently, with latest-twelve-month earnings at ₹1.2b, we should see this fall to ₹1.1b by 2020. Below is a brief commentary on the longer term outlook the market has for TVS Srichakra. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for TVS Srichakra

How will TVS Srichakra perform in the near future?

The longer term view from the 2 analysts covering TVSSRICHAK is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of TVSSRICHAK’s earnings growth over these next few years.

By 2022, TVSSRICHAK’s earnings should reach ₹1.7b, from current levels of ₹1.2b, resulting in an annual growth rate of 15%. EPS reaches ₹215.58 in the final year of forecast compared to the current ₹151.68 EPS today. Margins are currently sitting at 5.4%, approximately the same as previous years. With analysts forecasting revenue growth of 0.40759 and TVSSRICHAK’s net income growth expected to roughly track that, this company may add value for shareholders over time.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For TVS Srichakra, there are three key aspects 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 TVS Srichakra 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 TVS Srichakra is currently mispriced by the market.

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