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As Rajesh Exports Limited (NSE:RAJESHEXPO) announced its earnings release on 31 December 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 12% next year compared with the higher past 5-year average growth rate of 23%. With trailing-twelve-month net income at current levels of ₹13b, we should see this rise to ₹14b in 2020. Below is a brief commentary on the longer term outlook the market has for Rajesh Exports. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Rajesh Exports
Exciting times ahead?
Longer term expectations from the 2 analysts covering RAJESHEXPO’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of RAJESHEXPO’s earnings growth over these next few years.
From the current net income level of ₹13b and the final forecast of ₹19b by 2022, the annual rate of growth for RAJESHEXPO’s earnings is 13%. This leads to an EPS of ₹69.63 in the final year of projections relative to the current EPS of ₹42.87. Margins are currently sitting at 0.7%, which is expected to expand to 0.8% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Rajesh Exports, I’ve put together three key aspects you should further examine:
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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 Rajesh Exports 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 Rajesh Exports 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 Rajesh Exports? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.