Where NBCC (India) Limited (NSE:NBCC) Stands In Terms Of Earnings Growth Against Its Industry

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at NBCC (India) Limited's (NSEI:NBCC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for NBCC (India)

Could NBCC beat the long-term trend and outperform its industry?

For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to examine many different companies on a more comparable basis, using the latest information. For NBCC (India), its most recent earnings (trailing twelve month) is ₹3.83B, which, in comparison to last year’s level, has increased by 16.80%. Since these values are relatively short-term thinking, I have created an annualized five-year figure for NBCC's earnings, which stands at ₹2.73B This shows that, on average, NBCC (India) has been able to increasingly raise its profits over the last couple of years as well.

How has it been able to do this? Let's see whether it is only owing to an industry uplift, or if NBCC (India) has seen some company-specific growth. The ascend in earnings seems to be propelled by a substantial top-line increase overtaking its growth rate of expenses. Though this resulted in a margin contraction, it has made NBCC (India) more profitable. Viewing growth from a sector-level, the IN construction industry has been growing its average earnings by double-digit 16.80% in the previous twelve months, and a less exciting 8.74% over the past five.

What does this mean?

NBCC (India)'s track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research NBCC (India) to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for NBCC’s future growth? Take a look at our free research report of analyst consensus for NBCC’s outlook.
2. Financial Health: Is NBCC’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.
3. 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 December 2017. This may not be consistent with full year annual report figures.

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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.