In This Article:
The latest earnings update Cochin Shipyard Limited (NSE:COCHINSHIP) released in March 2018 showed that the business benefited from a robust tailwind, eventuating to a double-digit earnings growth of 27.0%. Below, I’ve laid out key growth figures on how market analysts predict Cochin Shipyard’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Cochin Shipyard
Market analysts’ consensus outlook for next year seems rather subdued, with earnings expanding by a single digit 9.3%. The growth outlook in the following year seems much more optimistic with rates arriving at double digit 21.8% compared to today’s earnings, and finally hitting ₹5.19b by 2021.
Although it’s informative understanding the rate of growth year by year relative to today’s level, it may be more beneficial estimating the rate at which the company is growing every year, on average. The benefit of this approach is that we can get a bigger picture of the direction of Cochin Shipyard’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve inserted 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 9.3%. This means that, we can anticipate Cochin Shipyard will grow its earnings by 9.3% every year for the next couple of years.
Next Steps:
For Cochin Shipyard, I’ve compiled three relevant aspects you should look at:
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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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Future Earnings: How does COCHINSHIP’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of COCHINSHIP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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 editorial-team@simplywallst.com.