If EPS Growth Is Important To You, MITCON Consultancy & Engineering Services (NSE:MITCON) 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 as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' 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 MITCON Consultancy & Engineering Services (NSE:MITCON). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

Check out our latest analysis for MITCON Consultancy & Engineering Services

How Fast Is MITCON Consultancy & Engineering Services Growing Its Earnings Per Share?

Over the last three years, MITCON Consultancy & Engineering Services has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. As a result, we'll zoom in on growth over the last year, instead. It's good to see that MITCON Consultancy & Engineering Services' EPS has grown from ₹2.82 to ₹3.48 over twelve months. That's a 23% 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. MITCON Consultancy & Engineering Services maintained stable EBIT margins over the last year, all while growing revenue 39% to ₹1.2b. That's a real positive.

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

Since MITCON Consultancy & Engineering Services is no giant, with a market capitalisation of ₹1.8b, you should definitely check its cash and debt before getting too excited about its prospects.

Are MITCON Consultancy & Engineering Services Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

With strong conviction, MITCON Consultancy & Engineering Services insiders have stood united by refusing to sell shares over the last year. But the bigger deal is that the company insider, Ajita Agarwal, paid ₹4.5m to buy shares at an average price of ₹47.14. Purchases like this clue us in to the to the faith management has in the business' future.

Is MITCON Consultancy & Engineering Services Worth Keeping An Eye On?

As previously touched on, MITCON Consultancy & Engineering Services is a growing business, which is encouraging. Not every business can grow its EPS, but MITCON Consultancy & Engineering Services certainly can. Despite there being a solitary insider adding to their holdings, it's enough to consider adding this to the watchlist. Even so, be aware that MITCON Consultancy & Engineering Services is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

There are plenty of other companies that have insiders buying up shares. So if you like the sound of MITCON Consultancy & Engineering Services, you'll probably love this curated collection of companies in IN that have witnessed growth alongside insider buying in the last three months.

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.