For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine IFGL Refractories Limited’s (NSEI:IFGLEXPOR) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. Check out our latest analysis for IFGL Refractories
Did IFGLEXPOR beat its long-term earnings growth trend and its industry?
I prefer to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to analyze various companies in a uniform manner using the most relevant data points. “For IFGL Refractories, its “, latest twelve-month earnings is ₹381.0M, which, in comparison to the previous year’s level, has moved up by 49.87%. Given that these figures are somewhat short-term, I’ve computed an annualized five-year value for IFGL Refractories’s earnings, which stands at ₹148.2M. This means generally, IFGL Refractories has been able to steadily raise its net income over the past few years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is merely because of industry tailwinds, or if IFGL Refractories has seen some company-specific growth. The hike in earnings seems to be driven by a strong top-line increase outstripping its growth rate of expenses. Though this has caused a margin contraction, it has made IFGL Refractories more profitable. Looking at growth from a sector-level, the IN construction materials industry has been growing its average earnings by double-digit 19.09% over the past year, and a less exciting 4.40% over the previous five years. This shows that whatever uplift the industry is gaining from, IFGL Refractories is capable of leveraging this to its advantage.
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 IFGL Refractories gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research IFGL Refractories to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for IFGLEXPOR’s future growth? Take a look at our free research report of analyst consensus for IFGLEXPOR’s outlook.
2. Financial Health: Is IFGLEXPOR’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.