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When Atul Auto Limited (NSE:ATULAUTO) announced its most recent earnings (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Atul Auto has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see ATULAUTO has performed.
See our latest analysis for Atul Auto
How Did ATULAUTO's Recent Performance Stack Up Against Its Past?
ATULAUTO's trailing twelve-month earnings (from 31 March 2019) of ₹551m has jumped 15% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.3%, indicating the rate at which ATULAUTO is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is only due to an industry uplift, or if Atul Auto has seen some company-specific growth.
In terms of returns from investment, Atul Auto has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the IN Auto industry of 13%, indicating Atul Auto has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Atul Auto’s debt level, has declined over the past 3 years from 45% to 28%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Atul Auto gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Atul Auto to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for ATULAUTO’s future growth? Take a look at our free research report of analyst consensus for ATULAUTO’s outlook.
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Financial Health: Are ATULAUTO’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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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 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.