In This Article:
The most recent earnings release Mangalore Refinery and Petrochemicals Limited’s (NSEI:MRPL) announced in March 2017 showed that the company benefited from a substantial tailwind, more than doubling its earnings from the prior year. Today I want to provide a brief commentary on how market analysts predict Mangalore Refinery and Petrochemicals’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Mangalore Refinery and Petrochemicals
Analysts’ outlook for the coming year seems pessimistic, with earnings falling by a double-digit -33.66%. Beyond this, earnings are predicted to continue to be below today’s level, with a decline of -33.43% in 2020, eventually reaching ₹23.12B in 2021.
While it is informative knowing the growth rate each year relative to today’s value, it may be more valuable evaluating the rate at which the company is moving every year, on average. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Mangalore Refinery and Petrochemicals’s earnings trajectory over time, fluctuate up and down. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -16.87%. This means, we can expect Mangalore Refinery and Petrochemicals will chip away at a rate of -16.87% every year for the next couple of years.
Next Steps:
For Mangalore Refinery and Petrochemicals, there are three important factors you should look at:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is MRPL 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 MRPL is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MRPL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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.