Interested In Castex Technologies Limited (NSE:CASTEXTECH)? Here's How It Performed Recently

Assessing Castex Technologies Limited's (NSEI:CASTEXTECH) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess CASTEXTECH's latest performance announced on 31 March 2017 and evaluate these figures to its historical trend and industry movements. See our latest analysis for Castex Technologies

Did CASTEXTECH beat its long-term earnings growth trend and its industry?

For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to analyze various companies in a uniform manner using new information. For Castex Technologies, its latest trailing-twelve-month earnings is -₹10.38B, which, in comparison to last year’s figure, has become less negative. Given that these figures are relatively short-term thinking, I have calculated an annualized five-year figure for CASTEXTECH's net income, which stands at ₹6.80M.

We can further assess Castex Technologies's loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Castex Technologies's top-line has risen by a mere 6.42%, on average. The company's inability to breakeven has been aided by the relatively flat top-line in the past. Viewing growth from a sector-level, the IN auto components industry has been growing its average earnings by double-digit 12.02% over the previous year, and 11.54% over the last five years. This suggests that, while Castex Technologies is currently unprofitable, it may have been aided by industry tailwinds, moving earnings in the right direction.

What does this mean?

While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Castex Technologies may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Castex Technologies to get a more holistic view of the stock by looking at:

• 1. Financial Health: Is CASTEXTECH’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.
• 2. 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 2017. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.