Measuring Solar Industries India Limited’s (NSEI:SOLARINDS) 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 SOLARINDS’s recent performance announced on 31 December 2017 and weigh these figures against its long-term trend and industry movements. Check out our latest analysis for Solar Industries India

Could SOLARINDS beat the long-term trend and outperform its industry?

I prefer to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to examine various companies in a uniform manner using the latest information. For Solar Industries India, its most recent earnings (trailing twelve month) is ₹2.18B, which, in comparison to last year’s figure, has jumped up by 22.76%. Since these figures may be relatively nearsighted, I’ve computed an annualized five-year figure for Solar Industries India’s net income, which stands at ₹1.38B This suggests that, generally, Solar Industries India has been able to steadily raise its earnings over the past couple of years as well.

What’s the driver of this growth? Well, let’s take a look at whether it is only owing to industry tailwinds, or if Solar Industries India has experienced some company-specific growth. In the last few years, Solar Industries India expanded its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the IN chemicals industry has been growing its average earnings by double-digit 20.31% over the past year, and a more subdued 9.76% over the past five years. This means whatever tailwind the industry is profiting from, Solar Industries India is able to amplify this to its advantage.

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 recommend you continue to research Solar Industries India to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.