Examining V-Mart Retail Limited’s (NSEI:VMART) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess VMART’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for V-Mart Retail
How Did VMART’s Recent Performance Stack Up Against Its Past?
I like to use 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 allows me to assess various companies in a uniform manner using the latest information. “For V-Mart Retail, its “, latest twelve-month earnings is ₹559.6M, which, against last year’s figure, has rocketed up by more than double. Given that these values may be somewhat nearsighted, I have created an annualized five-year value for V-Mart Retail’s net income, which stands at ₹290.7M. This means that, on average, V-Mart Retail has been able to gradually raise its profits over the last couple of years as well.
How has it been able to do this? Well, let’s take a look at whether it is only a result of industry tailwinds, or if V-Mart Retail has seen some company-specific growth. The rise in earnings seems to be supported by a substantial top-line increase outstripping its growth rate of costs. Though this brought about a margin contraction, it has made V-Mart Retail more profitable. Looking at growth from a sector-level, the IN multiline retail industry has been growing average earnings growth of 57.20% in the prior year, and a robust 36.22% over the previous few years. This suggests that any tailwind the industry is enjoying, V-Mart Retail is able to leverage 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 V-Mart Retail gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research V-Mart Retail to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for VMART’s future growth? Take a look at our free research report of analyst consensus for VMART’s outlook.
2. Financial Health: Is VMART’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.