Measuring Harita Seating Systems Limited’s (NSEI:HARITASEAT) track record of past performance is a useful exercise for investors. It enables 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 HARITASEAT’s recent performance announced on 31 March 2017 and weigh these figures against its long-term trend and industry movements. See our latest analysis for Harita Seating Systems
Commentary On HARITASEAT’s Past Performance
I prefer to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique enables me to assess different companies on a more comparable basis, using the latest information. “For Harita Seating Systems, its “, latest earnings is ₹288.4M, which, against the prior year’s level, has jumped up by 11.24%. Given that these figures are fairly myopic, I’ve determined an annualized five-year figure for HARITASEAT’s earnings, which stands at ₹135.9M. This means generally, Harita Seating Systems has been able to steadily raise its net income over the past couple of years as well.
What’s enabled this growth? Let’s see if it is solely owing to industry tailwinds, or if Harita Seating Systems has seen some company-specific growth. Over the past few years, Harita Seating Systems grew its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Looking at growth from a sector-level, the IN auto components industry has been growing its average earnings by double-digit 10.24% in the past twelve months, and 11.47% over the past couple of years. This means any tailwind the industry is benefiting from, Harita Seating Systems is able to leverage this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. 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 Harita Seating Systems to get a more holistic view of the stock by looking at:
1. Financial Health: Is HARITASEAT’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.
2. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.