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After Genus Power Infrastructures Limited’s (NSE:GENUSPOWER) recent earnings announcement in March 2018, analyst consensus outlook appear pessimistic, with earnings expected to decline by -9.0% in the upcoming year relative to the past 5-year average growth rate of 13%. Presently, with latest-twelve-month earnings at ₹845m, we should see this fall to ₹769m by 2020. Below is a brief commentary on the longer term outlook the market has for Genus Power Infrastructures. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Genus Power Infrastructures
What can we expect from Genus Power Infrastructures in the longer term?
The longer term expectations from the 2 analysts of GENUSPOWER is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for GENUSPOWER, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 1.4% based on the most recent earnings level of ₹845m to the final forecast of ₹942m by 2022. This leads to an EPS of ₹3.7 in the final year of projections relative to the current EPS of ₹3.68. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 10% to 6.3% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Genus Power Infrastructures, I’ve compiled three relevant aspects 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.
- Valuation: What is Genus Power Infrastructures 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 Genus Power Infrastructures is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Genus Power Infrastructures? 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 editorial-team@simplywallst.com.