Examining Arshiya Limited’s (NSEI:ARSHIYA) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ARSHIYA’s latest performance announced on 30 June 2017 and weight these figures against its longer term trend and industry movements. See our latest analysis for Arshiya
How Did ARSHIYA’s Recent Performance Stack Up Against Its Past?
I like to 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 blend enables me to examine various companies on a more comparable basis, using the most relevant data points. For Arshiya, its latest earnings is -₹3,896.1M, which compared to the prior year’s level, has become less negative. Since these figures are relatively nearsighted, I’ve created an annualized five-year value for ARSHIYA’s earnings, which stands at -₹3,254.8M. This shows that, Arshiya has historically performed better than recently, despite the fact that it seems like earnings are now heading back in the right direction again.
We can further assess Arshiya’s loss by looking at what has been happening in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over the past couple of years has been negative at -23.02%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Inspecting growth from a sector-level, the IN logistics industry has been growing, albeit, at a unexciting single-digit rate of 4.94% over the previous year, and 6.64% over the past five. This suggests that although Arshiya is currently unprofitable, any recent headwind the industry is facing, Arshiya is relatively better-cushioned than its peers.
What does this mean?
Arshiya’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to predict what will occur going forward, and when. The most insightful step is to assess company-specific issues Arshiya may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Arshiya to get a better picture of the stock by looking at:
1. Financial Health: Is ARSHIYA’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.