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Measuring Indraprastha Medical Corporation Limited’s (NSE:INDRAMEDCO) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess INDRAMEDCO’s recent performance announced on 31 December 2018 and weigh these figures against its long-term trend and industry movements.
View our latest analysis for Indraprastha Medical
Could INDRAMEDCO beat the long-term trend and outperform its industry?
INDRAMEDCO’s trailing twelve-month earnings (from 31 December 2018) of ₹269m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -9.7%, indicating the rate at which INDRAMEDCO is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is solely a result of an industry uplift, or if Indraprastha Medical has experienced some company-specific growth.
In terms of returns from investment, Indraprastha Medical has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 6.8% exceeds the IN Healthcare industry of 5.2%, indicating Indraprastha Medical has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Indraprastha Medical’s debt level, has declined over the past 3 years from 21% to 18%.
What does this mean?
Though Indraprastha Medical’s past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn’t always indicative of a continued optimistic outlook. I recommend you continue to research Indraprastha Medical 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 INDRAMEDCO’s future growth? Take a look at our free research report of analyst consensus for INDRAMEDCO’s outlook.
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Financial Health: Are INDRAMEDCO’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 31 December 2018. 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.