How Do Analysts See PI Industries Limited (NSE:PIIND) Performing In The Next Couple Of Years?
PI Industries Limited’s (NSE:PIIND) most recent earnings announcement in March 2018 confirmed that the business faced a major headwind with earnings declining by -20%. Below is a brief commentary on my key takeaways on how market analysts predict PI Industries’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for PI Industries
Analysts’ outlook for next year seems positive, with earnings rising by a robust 13%. This growth seems to continue into the following year with rates reaching double digit 37% compared to today’s earnings, and finally hitting ₹5.9b by 2021.
Although it’s helpful to be aware of the growth rate year by year relative to today’s value, it may be more insightful estimating the rate at which the company is moving on average every year. The benefit of this method is that we can get a bigger picture of the direction of PI Industries’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 16%. This means, we can anticipate PI Industries will grow its earnings by 16% every year for the next couple of years.
Next Steps:
For PI Industries, I’ve put together three pertinent factors you should look at:
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 PIIND 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 PIIND is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PIIND? 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.
