Interested In Sobha Limited (NSE:SOBHA)? Here’s What Its Recent Performance Looks Like
For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Sobha Limited (NSE:SOBHA) useful as an attempt to give more color around how Sobha is currently performing.
Check out our latest analysis for Sobha
How Did SOBHA’s Recent Performance Stack Up Against Its Past?
SOBHA’s trailing twelve-month earnings (from 30 June 2018) of ₹2.2b has jumped 29% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -6.2%, indicating the rate at which SOBHA is growing has accelerated. What’s enabled this growth? Let’s see if it is solely attributable to an industry uplift, or if Sobha has experienced some company-specific growth.
In terms of returns from investment, Sobha has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 4.0% exceeds the IN Real Estate industry of 2.9%, indicating Sobha has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Sobha’s debt level, has increased over the past 3 years from 12% to 14%.
What does this mean?
Though Sobha’s past data is helpful, it is only one aspect of my investment thesis. While Sobha 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 Sobha to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SOBHA’s future growth? Take a look at our free research report of analyst consensus for SOBHA’s outlook.
Financial Health: Are SOBHA’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 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 editorial-team@simplywallst.com.
