Dilip Buildcon Limited’s (NSE:DBL) latest earnings update in March 2018 showed that the company gained from a sizeable tailwind, leading to a high double-digit earnings growth of 61%. Below, I’ve presented key growth figures on how market analysts predict Dilip Buildcon’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Analysts’ expectations for next year seems buoyant, with earnings expanding by a robust 22%. This growth seems to continue into the following year with rates reaching double digit 33% compared to today’s earnings, and finally hitting ₹9.2b by 2021.
Although it’s helpful to understand the rate of growth each year relative to today’s level, it may be more beneficial determining the rate at which the business is growing every year, on average. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Dilip Buildcon’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 14%. This means, we can expect Dilip Buildcon will grow its earnings by 14% every year for the next couple of years.
For Dilip Buildcon, I’ve put together three important factors you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is DBL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DBL is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DBL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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 email@example.com.