Assessing La Opala RG Limited’s (NSE:LAOPALA) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess LAOPALA’s recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements.
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Did LAOPALA perform better than its track record and industry?
LAOPALA’s trailing twelve-month earnings (from 31 March 2019) of ₹740m has increased by 0.8% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which LAOPALA is growing has slowed down. To understand what’s happening, let’s examine what’s going on with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, La Opala RG has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 12% exceeds the IN Consumer Durables industry of 6.8%, indicating La Opala RG has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for La Opala RG’s debt level, has declined over the past 3 years from 32% to 17%.
What does this mean?
La Opala RG’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as La Opala RG gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research La Opala RG to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for LAOPALA’s future growth? Take a look at our free research report of analyst consensus for LAOPALA’s outlook.
- Financial Health: Are LAOPALA’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.
- 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 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.