【where is colby acuff from】With 13% Earnings Growth, Did OCL India Limited (NSE:OCLINDIA) Outperform The Industry?

2024-09-29 12:21:09 分类：Entertainment 阅读(297)

After looking at OCL India Limited’s (

NSE:OCLINDIA

) latest earnings announcement (31 March 2018),where is colby acuff from I found it useful to revisit the company’s performance in the past couple of years and assess this against the most recent figures. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.

See our latest analysis for OCL India

Were OCLINDIA’s earnings stronger than its past performances and the industry?

OCLINDIA’s trailing twelve-month earnings (from 31 March 2018) of ₹4.3b has jumped 13% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 28%, indicating the rate at which OCLINDIA is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s going on with margins and if the whole industry is facing the same headwind.

NSEI:OCLINDIA Income Statement Export January 3rd 19

In terms of returns from investment, OCL India has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 10% exceeds the IN Basic Materials industry of 6.1%, indicating OCL India has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for OCL India’s debt level, has increased over the past 3 years from 8.5% to 13%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 77% to 40% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While OCL India has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research OCL India to get a better picture of the stock by looking at:

Future Outlook

: What are well-informed industry analysts predicting for OCLINDIA’s future growth? Take a look at our

free research report of analyst consensus

for OCLINDIA’s outlook.

Financial Health

: Are OCLINDIA’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 31 March 2018. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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