Does Madhya Pradesh Today Media Limited's (NSE:MPTODAY) Recent Track Record Look Strong?

For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Madhya Pradesh Today Media Limited (NSEI:MPTODAY) useful as an attempt to give more color around how Madhya Pradesh Today Media is currently performing.

See our latest analysis for Madhya Pradesh Today Media

Did MPTODAY beat its long-term earnings growth trend and its industry?

MPTODAY's trailing twelve-month earnings (from 31 March 2019) of ₹45m has jumped 45% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 36%, indicating the rate at which MPTODAY is growing has accelerated. How has it been able to do this? Let's take a look at if it is solely due to an industry uplift, or if Madhya Pradesh Today Media has seen some company-specific growth.

NSEI:MPTODAY Income Statement, November 11th 2019
NSEI:MPTODAY Income Statement, November 11th 2019

In terms of returns from investment, Madhya Pradesh Today Media has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 11% exceeds the IN Media industry of 10%, indicating Madhya Pradesh Today Media has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Madhya Pradesh Today Media’s debt level, has declined over the past 3 years from 38% to 20%.

What does this mean?

Madhya Pradesh Today Media's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Madhya Pradesh Today Media to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for MPTODAY’s future growth? Take a look at our free research report of analyst consensus for MPTODAY’s outlook.

  2. Financial Health: Are MPTODAY’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.

  3. 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 editorial-team@simplywallst.com. 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.

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