In This Article:
Today I will examine VST Industries Limited's (NSE:VSTIND) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of VSTIND's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
View our latest analysis for VST Industries
How VSTIND fared against its long-term earnings performance and its industry
VSTIND's trailing twelve-month earnings (from 31 March 2019) of ₹2.3b has jumped 25% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 7.6%, indicating the rate at which VSTIND is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is only due to an industry uplift, or if VST Industries has experienced some company-specific growth.
In terms of returns from investment, VST Industries has invested its equity funds well leading to a 34% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 19% exceeds the IN Tobacco industry of 6.3%, indicating VST Industries has used its assets more efficiently. However, its return on capital (ROC), which also accounts for VST Industries’s debt level, has declined over the past 3 years from 54% to 46%.
What does this mean?
While past data is useful, it 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 VST Industries to get a better picture of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for VSTIND’s future growth? Take a look at our free research report of analyst consensus for VSTIND’s outlook.
-
Financial Health: Are VSTIND’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.
-
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 31 March 2019. This may not be consistent with full year annual report figures.
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.