Measuring Anjani Portland Cement Limited’s (NSEI:APCL) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess APCL’s recent performance announced on 30 September 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for Anjani Portland Cement
Commentary On APCL’s Past Performance
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to analyze many different companies in a uniform manner using new information. “For Anjani Portland Cement, its “, most recent bottom-line is ₹354.2M, which, in comparison to the prior year’s level, has moved up by 12.74%. Given that these figures are fairly myopic, I’ve created an annualized five-year value for APCL’s earnings, which stands at ₹145.2M. This suggests that, generally, Anjani Portland Cement has been able to consistently improve its profits over the last few years as well.
What’s enabled this growth? Let’s take a look at whether it is merely owing to industry tailwinds, or if Anjani Portland Cement has seen some company-specific growth. Over the past few years, Anjani Portland Cement grew its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Inspecting growth from a sector-level, the IN construction materials industry has been growing its average earnings by double-digit 19.09% in the past twelve months, and a more muted 4.40% over the previous few years. This suggests that whatever uplift the industry is deriving benefit from, Anjani Portland Cement has not been able to realize the gains unlike its average peer.
What does this mean?
Though Anjani Portland Cement’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Anjani Portland Cement to get a better picture of the stock by looking at:
1. Financial Health: Is APCL’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.