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Rajesh Exports Limited's (NSE:RAJESHEXPO) released its most recent earnings update in March 2019, which signalled that the business gained from a small tailwind, eventuating to a single-digit earnings growth of 2.1%. Below, I've laid out key numbers on how market analysts view Rajesh Exports's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Rajesh Exports

Analysts' expectations for next year seems optimistic, with earnings growing by a robust 14%. This growth seems to continue into the following year with rates arriving at double digit 32% compared to today’s earnings, and finally hitting ₹19b by 2022.

While it is informative knowing the growth year by year relative to today’s value, it may be more beneficial determining the rate at which the earnings are growing on average every year. The pro of this method is that we can get a better picture of the direction of Rajesh Exports's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 11%. This means, we can assume Rajesh Exports will grow its earnings by 11% every year for the next few years.

Next Steps:

For Rajesh Exports, there are three important aspects you should further research:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is RAJESHEXPO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RAJESHEXPO is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of RAJESHEXPO? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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.