For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Shreyans Industries Limited (NSE:SHREYANIND) useful as an attempt to give more color around how Shreyans Industries is currently performing.

See our latest analysis for Shreyans Industries

Did SHREYANIND beat its long-term earnings growth trend and its industry?

SHREYANIND's trailing twelve-month earnings (from 30 June 2019) of ₹480m has jumped 43% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 35%, indicating the rate at which SHREYANIND is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is merely due to industry tailwinds, or if Shreyans Industries has seen some company-specific growth.

In terms of returns from investment, Shreyans Industries has invested its equity funds well leading to a 24% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 15% exceeds the IN Forestry industry of 7.9%, indicating Shreyans Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Shreyans Industries’s debt level, has increased over the past 3 years from 13% to 29%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 55% to 16% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Shreyans 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 Shreyans Industries to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for SHREYANIND’s future growth? Take a look at our free research report of analyst consensus for SHREYANIND’s outlook.

2. Financial Health: Are SHREYANIND’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.

3. 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.