Assessing VS.T. Tillers Tractors Limited’s (NSEI:VSTTILLERS) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess VSTTILLERS’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. See our latest analysis for V.S.T. Tillers Tractors
Did VSTTILLERS beat its long-term earnings growth trend and its industry?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique enables me to assess various companies on a similar basis, using new information. For V.S.T. Tillers Tractors, its latest trailing-twelve-month earnings is ₹918.75M, which, in comparison to last year’s figure, has jumped up by 30.52%. Given that these figures are fairly myopic, I’ve created an annualized five-year value for V.S.T. Tillers Tractors’s net income, which stands at ₹665.69M This means on average, V.S.T. Tillers Tractors has been able to steadily raise its net income over the last couple of years as well.
How has it been able to do this? Let’s see if it is only owing to industry tailwinds, or if V.S.T. Tillers Tractors has experienced some company-specific growth. In the past few years, V.S.T. Tillers Tractors grew its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Looking at growth from a sector-level, the IN machinery industry has been growing its average earnings by double-digit 13.86% over the previous year, and a less exciting 3.95% over the past five. This means any uplift the industry is benefiting from, V.S.T. Tillers Tractors is capable of amplifying this to its advantage.
What does this mean?
V.S.T. Tillers Tractors’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While V.S.T. Tillers Tractors has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research V.S.T. Tillers Tractors 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 VSTTILLERS’s future growth? Take a look at our free research report of analyst consensus for VSTTILLERS’s outlook.
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Financial Health: Is VSTTILLERS’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.