U.S. Markets close in 3 hrs 20 mins

How Does Apollo Sindoori Hotels Limited's (NSE:APOLSINHOT) Earnings Growth Stack Up Against Industry Performance?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Understanding Apollo Sindoori Hotels Limited's (NSE:APOLSINHOT) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Apollo Sindoori Hotels is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.

See our latest analysis for Apollo Sindoori Hotels

Could APOLSINHOT beat the long-term trend and outperform its industry?

APOLSINHOT's trailing twelve-month earnings (from 31 March 2019) of ₹206m has jumped 35% 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 69%, indicating the rate at which APOLSINHOT is growing has slowed down. To understand what's happening, let's look at what's occurring with margins and if the entire industry is feeling the heat.

NSEI:APOLSINHOT Income Statement, July 9th 2019

In terms of returns from investment, Apollo Sindoori Hotels has invested its equity funds well leading to a 30% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 20% exceeds the IN Commercial Services industry of 6.7%, 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 18%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Apollo Sindoori Hotels 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 Apollo Sindoori Hotels to get a better picture of the stock by looking at:

  1. 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.
  2. 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.
  3. 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 editorial-team@simplywallst.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.