Does Time Technoplast Limited's (NSE:TIMETECHNO) Past Performance Indicate A Stronger Future?

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Time Technoplast Limited's (NSEI:TIMETECHNO) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

View our latest analysis for Time Technoplast

Commentary On TIMETECHNO's Past Performance

TIMETECHNO's trailing twelve-month earnings (from 30 June 2019) of ₹2.0b has increased by 8.5% 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 15%, indicating the rate at which TIMETECHNO is growing has slowed down. To understand what's happening, let’s take a look at what’s transpiring with margins and whether the whole industry is experiencing the hit as well.

In terms of returns from investment, Time Technoplast has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 9.6% exceeds the IN Packaging industry of 8.4%, indicating Time Technoplast has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Time Technoplast’s debt level, has increased over the past 3 years from 17% to 18%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 86% to 49% over the past 5 years.

What does this mean?

Time Technoplast's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Time Technoplast to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for TIMETECHNO’s future growth? Take a look at our free research report of analyst consensus for TIMETECHNO’s outlook.
2. Financial Health: Are TIMETECHNO’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.
3. 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 30 June 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 editorial-team@simplywallst.com. 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.