Want To Invest In Container Corporation of India Limited (NSE:CONCOR)? Here’s How It Performed Lately
Measuring Container Corporation of India Limited’s (NSE:CONCOR) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess CONCOR’s recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. See our latest analysis for Container of India
Could CONCOR beat the long-term trend and outperform its industry?
CONCOR’s trailing twelve-month earnings (from 31 March 2018) of ₹10.64b has jumped 24.23% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.75%, indicating the rate at which CONCOR is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely owing to industry tailwinds, or if Container of India has seen some company-specific growth.
The hike in earnings seems to be supported by a substantial top-line increase beating its growth rate of costs. Though this has led to a margin contraction, it has made Container of India more profitable. Viewing growth from a sector-level, the IN transportation industry has been growing its average earnings by double-digit 31.35% over the previous twelve months, and a less exciting 3.29% over the previous five years. This means whatever uplift the industry is deriving benefit from, Container of India has not been able to leverage it as much as its average peer.
In terms of returns from investment, Container of India has not invested its equity funds well, leading to a 11.24% return on equity (ROE), below the sensible minimum of 20%. However, its return on assets (ROA) of 9.84% exceeds the IN Transportation industry of 8.08%, indicating Container of India has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Container of India’s debt level, has declined over the past 3 years from 16.41% to 14.44%.
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 Container of India gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Container of India to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CONCOR’s future growth? Take a look at our free research report of analyst consensus for CONCOR’s outlook.
Financial Health: Is CONCOR’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 pass 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.
