Examining Lypsa Gems & Jewellery Limited’s (NSEI:LYPSAGEMS) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess LYPSAGEMS’s latest performance announced on 31 December 2017 and weight these figures against its longer term trend and industry movements. See our latest analysis for Lypsa Gems & Jewellery
Were LYPSAGEMS’s earnings stronger than its past performances and the industry?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, 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 enables me to assess different stocks on a more comparable basis, using the latest information. For Lypsa Gems & Jewellery, its most recent trailing-twelve-month earnings is ₹295.07M, which, against the prior year’s level, has climbed up by a significant 90.04%. Given that these figures may be somewhat nearsighted, I’ve determined an annualized five-year value for LYPSAGEMS’s net income, which stands at ₹126.26M This means that, on average, Lypsa Gems & Jewellery has been able to steadily improve its net income over the past couple of years as well.How has it been able to do this? Let’s take a look at if it is merely because of an industry uplift, or if Lypsa Gems & Jewellery has experienced some company-specific growth. In the last couple of years, Lypsa Gems & Jewellery increased its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the IN luxury industry has been growing, albeit, at a subdued single-digit rate of 5.55% in the past twelve months, and a substantial 12.84% over the last five years. This suggests that any uplift the industry is deriving benefit from, Lypsa Gems & Jewellery is able to leverage this to its advantage.
What does this mean?
Though Lypsa Gems & Jewellery’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Lypsa Gems & Jewellery gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Lypsa Gems & Jewellery to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for LYPSAGEMS’s future growth? Take a look at our free research report of analyst consensus for LYPSAGEMS’s outlook.
- Financial Health: Is LYPSAGEMS’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.