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Measuring Godrej Properties Limited’s (NSE:GODREJPROP) 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 GODREJPROP’s recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
How GODREJPROP fared against its long-term earnings performance and its industry
GODREJPROP’s trailing twelve-month earnings (from 31 March 2019) of ₹2.5b has increased by 7.7% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.3%, indicating the rate at which GODREJPROP is growing has accelerated. What’s enabled this growth? Let’s see whether it is only attributable to an industry uplift, or if Godrej Properties has seen some company-specific growth.
In terms of returns from investment, Godrej Properties has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 6.0% exceeds the IN Real Estate industry of 3.6%, indicating Godrej Properties has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Godrej Properties’s debt level, has increased over the past 3 years from 5.4% to 5.5%.
What does this mean?
Though Godrej Properties’s past data is helpful, it is only one aspect of my investment thesis. 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 Godrej Properties to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for GODREJPROP’s future growth? Take a look at our free research report of analyst consensus for GODREJPROP’s outlook.
- Financial Health: Are GODREJPROP’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.