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On 31 March 2019, Century Plyboards (India) Limited (NSE:CENTURYPLY) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, as a 27% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 9.8%. By 2020, we can expect Century Plyboards (India)’s bottom line to reach ₹1.9b, a jump from the current trailing-twelve-month of ₹1.5b. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Century Plyboards (India) in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will Century Plyboards (India) perform in the near future?
Longer term expectations from the 8 analysts covering CENTURYPLY’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of CENTURYPLY's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of ₹1.5b and the final forecast of ₹2.5b by 2022, the annual rate of growth for CENTURYPLY’s earnings is 20%. EPS reaches ₹11.1 in the final year of forecast compared to the current ₹6.68 EPS today. With a current profit margin of 6.5%, this movement will result in a margin of 8.4% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Century Plyboards (India), I've compiled three fundamental factors you should further research:
- 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.
- Valuation: What is Century Plyboards (India) 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 Century Plyboards (India) is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Century Plyboards (India)? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.