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In May 2019, Dilip Buildcon Limited (NSE:DBL) released its latest earnings announcement, which confirmed that the company faced a minor headwind with earnings falling from ₹5.8b to ₹5.5b, a change of -4.4%. Below, I've laid out key growth figures on how market analysts predict Dilip Buildcon's earnings growth trajectory over the next few 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 Dilip Buildcon
Analysts' expectations for next year seems positive, with earnings increasing by a robust 26%. This growth seems to continue into the following year with rates arriving at double digit 47% compared to today’s earnings, and finally hitting ₹10b by 2022.
While it’s helpful to be aware of the rate of growth year by year relative to today’s value, it may be more beneficial to determine the rate at which the earnings are moving every year, on average. The pro of this method is that we can get a better picture of the direction of Dilip Buildcon'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 put 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 18%. This means, we can presume Dilip Buildcon will grow its earnings by 18% every year for the next few years.
Next Steps:
For Dilip Buildcon, I've put together three important factors you should further research:
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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 DBL 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 DBL 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 DBL? 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.