Will Hindustan Media Ventures Limited's (BOM:533217) Earnings Grow In The Next 12 Months?

Based on Hindustan Media Ventures Limited's (BOM:533217) earnings update in March 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 1.62% next year against the higher past 5-year average growth rate of 18.57%. Presently, with earnings at ₹1.75b, we should see this growing to ₹1.78b by 2019. Below is a brief commentary on the longer term outlook the market has for Hindustan Media Ventures. For those interested in more of an analysis of the company, you can research its fundamentals here. View out our latest analysis for Hindustan Media Ventures

How will Hindustan Media Ventures perform in the near future?

The longer term view from the 3 analysts covering 533217 is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

This results in an annual growth rate of 11.06% based on the most recent earnings level of ₹1.75b to the final forecast of ₹2.48b by 2021. This leads to an EPS of ₹33.99 in the final year of projections relative to the current EPS of ₹23.89. The primary reason for earnings growth is due to cost cutting activities, as revenues is expected to grow much slower than earnings. With a current profit margin of 19.92%, this movement will result in a margin of 23.33% by 2021.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Hindustan Media Ventures, I've put together three essential aspects you should further research:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is Hindustan Media Ventures worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Hindustan Media Ventures is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hindustan Media Ventures? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.