In This Article:
Understanding how Veto Switchgears and Cables Limited (NSEI:VETO) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Veto Switchgears and Cables is doing by comparing its latest earnings with its long-term trend as well as the performance of its electrical industry peers. See our latest analysis for Veto Switchgears and Cables
How Well Did VETO Perform?
I look at 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 technique allows me to analyze different companies on a more comparable basis, using new information. For Veto Switchgears and Cables, its latest earnings (trailing twelve month) is ₹276.10M, which, against the prior year’s level, has jumped by a significant 62.77%. Since these figures may be fairly short-term thinking, I have computed an annualized five-year value for VETO’s earnings, which stands at ₹142.39M This shows that, on average, Veto Switchgears and Cables has been able to gradually grow its earnings over the past couple of years as well.
What’s enabled this growth? Well, let’s take a look at if it is solely a result of industry tailwinds, or if Veto Switchgears and Cables has seen some company-specific growth. Over the past couple of years, Veto Switchgears and Cables expanded its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the IN electrical industry has been growing its average earnings by double-digit 39.56% in the prior year, and 13.75% over the past five years. This suggests that whatever uplift the industry is deriving benefit from, Veto Switchgears and Cables is able to amplify this to its advantage.
What does this mean?
Veto Switchgears and Cables’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Veto Switchgears and Cables has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Veto Switchgears and Cables to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for VETO’s future growth? Take a look at our free research report of analyst consensus for VETO’s outlook.
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Financial Health: Is VETO’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.
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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 trailing twelve months from 31 December 2017. 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.