Measuring Patspin India Limited’s (NSEI:PATSPINLTD) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess PATSPINLTD’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for Patspin India
Could PATSPINLTD beat the long-term trend and outperform its industry?
I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to analyze different stocks on a more comparable basis, using the latest information. For Patspin India, its most recent earnings (trailing twelve month) is ₹59.04M, which compared to the prior year’s level, has jumped by a substantial 97.19%. Since these figures are somewhat myopic, I have estimated an annualized five-year figure for Patspin India’s earnings, which stands at -₹16.76M This means that, on average, Patspin India has been able to consistently raise its earnings over the past few years as well.What’s enabled this growth? Let’s see whether it is merely a result of industry tailwinds, or if Patspin India has experienced some company-specific growth. In the last couple of years, Patspin India increased its bottom line faster than revenue by efficiently controlling its costs. This has caused a margin expansion and profitability over time. Viewing growth from a sector-level, the IN luxury industry has been growing, albeit, at a subdued single-digit rate of 5.78% in the prior twelve months, and 9.42% over the past half a decade. This means whatever uplift the industry is profiting from, Patspin India is capable of leveraging this to its advantage.
What does this mean?
Patspin India’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Patspin India has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Patspin India to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is PATSPINLTD’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.
- 2. 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.