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Assessing Dwarikesh Sugar Industries Limited’s (NSEI:DWARKESH) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess DWARKESH’s recent performance announced on 31 December 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Dwarikesh Sugar Industries
Was DWARKESH weak performance lately part of a long-term decline?
I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to analyze various companies in a uniform manner using new information. For Dwarikesh Sugar Industries, its latest earnings (trailing twelve month) is ₹1.56B, which, relative to the prior year’s level, has dropped by -3.39%. Since these values are relatively short-term, I have created an annualized five-year figure for Dwarikesh Sugar Industries’s earnings, which stands at ₹170.36M This means even though earnings growth was negative against last year, over the past couple of years, Dwarikesh Sugar Industries’s earnings have been increasing on average.
What’s enabled this growth? Well, let’s take a look at if it is solely because of an industry uplift, or if Dwarikesh Sugar Industries has experienced some company-specific growth. In the past couple of years, Dwarikesh Sugar Industries increased its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Scanning growth from a sector-level, the IN food industry has been growing its average earnings by double-digit 34.98% over the prior year, and 17.86% over the last five years. This means any uplift the industry is enjoying, Dwarikesh Sugar Industries has not been able to reap as much as its industry peers.
What does this mean?
Dwarikesh Sugar Industries’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I recommend you continue to research Dwarikesh Sugar Industries to get a better picture of the stock by looking at:
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Financial Health: Is DWARKESH’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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Valuation: What is DWARKESH 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 DWARKESH is currently mispriced by the market.
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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 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.