Assessing Insecticides (India) Limited's (NSE:INSECTICID) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess INSECTICID's recent performance announced on 30 June 2019 and evaluate these figures to its long-term trend and industry movements.
Could INSECTICID beat the long-term trend and outperform its industry?
INSECTICID's trailing twelve-month earnings (from 30 June 2019) of ₹1.2b has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which INSECTICID is growing has accelerated. How has it been able to do this? Let's see if it is solely because of an industry uplift, or if Insecticides (India) has experienced some company-specific growth.
In terms of returns from investment, Insecticides (India) has fallen short of achieving a 20% return on equity (ROE), recording 19% instead. However, its return on assets (ROA) of 10% exceeds the IN Chemicals industry of 8.7%, indicating Insecticides (India) has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Insecticides (India)’s debt level, has increased over the past 3 years from 18% to 26%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 105% to 46% over the past 5 years.
What does this mean?
Insecticides (India)'s track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Insecticides (India) gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Insecticides (India) to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for INSECTICID’s future growth? Take a look at our free research report of analyst consensus for INSECTICID’s outlook.
- Financial Health: Are INSECTICID’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 30 June 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.