If EPS Growth Is Important To You, Antony Waste Handling Cell (NSE:AWHCL) Presents An Opportunity

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Antony Waste Handling Cell (NSE:AWHCL). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Antony Waste Handling Cell with the means to add long-term value to shareholders.

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How Fast Is Antony Waste Handling Cell Growing Its Earnings Per Share?

Even with very modest growth rates, a company will usually do well if it improves earnings per share (EPS) year after year. So it's easy to see why many investors focus in on EPS growth. Antony Waste Handling Cell's EPS has risen over the last 12 months, growing from ₹24.61 to ₹30.74. That's a 25% gain; respectable growth in the broader scheme of things.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. While we note Antony Waste Handling Cell achieved similar EBIT margins to last year, revenue grew by a solid 13% to ₹9.9b. That's progress.

In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.

See our latest analysis for Antony Waste Handling Cell

Antony Waste Handling Cell isn't a huge company, given its market capitalisation of ₹15b. That makes it extra important to check on its balance sheet strength.

Are Antony Waste Handling Cell Insiders Aligned With All Shareholders?

It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Antony Waste Handling Cell shares worth a considerable sum. Given insiders own a significant chunk of shares, currently valued at ₹5.0b, they have plenty of motivation to push the business to succeed. That holding amounts to 34% of the stock on issue, thus making insiders influential owners of the business and aligned with the interests of shareholders.

Is Antony Waste Handling Cell Worth Keeping An Eye On?

As previously touched on, Antony Waste Handling Cell is a growing business, which is encouraging. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. These two factors are a huge highlight for the company which should be a strong contender your watchlists. It is worth noting though that we have found 1 warning sign for Antony Waste Handling Cell that you need to take into consideration.

Although Antony Waste Handling Cell certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Indian companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.