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Measuring Ahlada Engineers Limited's (NSE:AHLADA) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess AHLADA's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
Did AHLADA beat its long-term earnings growth trend and its industry?
AHLADA's trailing twelve-month earnings (from 31 March 2019) of ₹114m has jumped 41% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 33%, indicating the rate at which AHLADA is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is merely due to an industry uplift, or if Ahlada Engineers has experienced some company-specific growth.
In terms of returns from investment, Ahlada Engineers has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 9.7% exceeds the IN Building industry of 6.5%, indicating Ahlada Engineers has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Ahlada Engineers’s debt level, has declined over the past 3 years from 26% to 21%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Ahlada Engineers has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Ahlada Engineers to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for AHLADA’s future growth? Take a look at our free research report of analyst consensus for AHLADA’s outlook.
- Financial Health: Are AHLADA’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.
- 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 March 2019. This may not be consistent with full year annual report figures.
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 firstname.lastname@example.org. 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.