Assessing Apollo Sindoori Hotels Limited’s (NSE:APOLSINHOT) 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 APOLSINHOT’s recent performance announced on 31 March 2018 and evaluate these figures to its longer term trend and industry movements.
How APOLSINHOT fared against its long-term earnings performance and its industry
APOLSINHOT’s trailing twelve-month earnings (from 31 March 2018) of ₹152m has jumped 26% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 64%, indicating the rate at which APOLSINHOT is growing has slowed down. To understand what’s happening, let’s look at what’s going on with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Apollo Sindoori Hotels has invested its equity funds well leading to a 32% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 20% exceeds the IN Hospitality industry of 4.8%, indicating Apollo Sindoori Hotels has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Apollo Sindoori Hotels’s debt level, has declined over the past 3 years from 23% to 17%.
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 Apollo Sindoori Hotels gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Apollo Sindoori Hotels to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for APOLSINHOT’s future growth? Take a look at our free research report of analyst consensus for APOLSINHOT’s outlook.
- Financial Health: Are APOLSINHOT’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 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.