Genus Power Infrastructures Limited’s (NSE:GENUSPOWER) most recent earnings announcement in March 2018 showed that the business experienced a robust tailwind, eventuating to a double-digit earnings growth of 31%. Below, I’ve laid out key numbers on how market analysts perceive Genus Power Infrastructures’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Analysts’ expectations for next year seems pessimistic, with earnings reducing by a double-digit -19%. Over the medium term, earnings will begin to improve, rising year on year, and generating ₹1.0b by 2022.
Although it is useful to be aware of the rate of growth year by year relative to today’s figure, it may be more valuable to analyze the rate at which the company is moving every year, on average. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Genus Power Infrastructures’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 3.5%. This means, we can presume Genus Power Infrastructures will grow its earnings by 3.5% every year for the next few years.
For Genus Power Infrastructures, there are three essential factors you should further examine:
- 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.
- Future Earnings: How does GENUSPOWER’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GENUSPOWER? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.