Examining Maithan Alloys Limited’s (NSEI:MAITHANALL) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MAITHANALL’s latest performance announced on 31 March 2017 and weigh these figures against its longer term trend and industry movements. See our latest analysis for Maithan Alloys
Commentary On MAITHANALL’s Past Performance
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method allows me to examine many different companies in a uniform manner using the latest information. “For Maithan Alloys, its “, latest earnings is ₹1,914.6M, which, relative to last year’s level, has climbed up by over 100%. Given that these values may be somewhat nearsighted, I’ve created an annualized five-year value for Maithan Alloys’s earnings, which stands at ₹709.6M. This suggests that, on average, Maithan Alloys has been able to increasingly raise its bottom line over the last few years as well.
How has it been able to do this? Let’s see if it is merely because of an industry uplift, or if Maithan Alloys has seen some company-specific growth. In the past few years, Maithan Alloys expanded its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Inspecting growth from a sector-level, the IN metals and mining industry has been growing its average earnings by double-digit 27.08% over the previous twelve months, and a more muted 3.25% over the previous five years. This suggests that whatever tailwind the industry is enjoying, Maithan Alloys is capable of amplifying this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Maithan Alloys has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Maithan Alloys to get a more holistic view of the stock by looking at:
1. Financial Health: Is MAITHANALL’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. Valuation: What is MAITHANALL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MAITHANALL is currently mispriced by the market.