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In March 2019, Jagran Prakashan Limited (NSE:JAGRAN) announced its latest earnings update, which showed that the company experienced a substantial headwind with earnings deteriorating by -13%. Below, I've laid out key growth figures on how market analysts view Jagran Prakashan's earnings growth outlook over the next few years and whether the future looks brighter. 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 Jagran Prakashan
Analysts' expectations for the upcoming year seems positive, with earnings rising by a robust 27%. This growth seems to continue into the following year with rates arriving at double digit 42% compared to today’s earnings, and finally hitting ₹3.9b by 2022.
While it is informative understanding the growth rate year by year relative to today’s level, it may be more valuable to determine the rate at which the business is growing on average every year. The pro of this technique is that we can get a better picture of the direction of Jagran Prakashan'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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 15%. This means, we can expect Jagran Prakashan will grow its earnings by 15% every year for the next couple of years.
Next Steps:
For Jagran Prakashan, I've put together three important factors you should further examine:
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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.
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Valuation: What is JAGRAN 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 JAGRAN is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JAGRAN? 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.