In This Article:
When Godrej Industries Limited (NSEI:GODREJIND) released its most recent earnings update (30 June 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how Godrej Industries performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see GODREJIND has performed.
See our latest analysis for Godrej Industries
Did GODREJIND beat its long-term earnings growth trend and its industry?
GODREJIND's trailing twelve-month earnings (from 30 June 2019) of ₹6.2b has jumped 47% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 5.5%, indicating the rate at which GODREJIND is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is solely a result of an industry uplift, or if Godrej Industries has experienced some company-specific growth.
In terms of returns from investment, Godrej Industries has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. Furthermore, its return on assets (ROA) of 5.6% is below the IN Industrials industry of 6.8%, indicating Godrej Industries's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Godrej Industries’s debt level, has declined over the past 3 years from 12% to 11%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Godrej Industries has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Godrej Industries to get a better picture of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for GODREJIND’s future growth? Take a look at our free research report of analyst consensus for GODREJIND’s outlook.
-
Financial Health: Are GODREJIND’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 30 June 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.