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Assessing Plastiblends India Limited’s (NSE:PLASTIBLEN) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess PLASTIBLEN’s latest performance announced on 30 June 2018 and evaluate these figures to its historical trend and industry movements.
View our latest analysis for Plastiblends India
Did PLASTIBLEN beat its long-term earnings growth trend and its industry?
PLASTIBLEN’s trailing twelve-month earnings (from 30 June 2018) of ₹321m has increased by 9.1% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.2%, indicating the rate at which PLASTIBLEN is growing has accelerated. What’s enabled this growth? Well, let’s take a look at whether it is solely because of an industry uplift, or if Plastiblends India has seen some company-specific growth.
The rise in earnings seems to be propelled by a substantial top-line increase outstripping its growth rate of expenses. Though this brought about a margin contraction, it has made Plastiblends India more profitable.
Scanning growth from a sector-level, the IN chemicals industry has been
In terms of returns from investment, Plastiblends India has fallen short of achieving a 20% return on equity (ROE), recording 13% instead.
What does this mean?
Plastiblends India’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Plastiblends India gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Plastiblends India to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for PLASTIBLEN’s future growth? Take a look at our free research report of analyst consensus for PLASTIBLEN’s outlook.
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Financial Health: Are PLASTIBLEN’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.
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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.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.
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.