| |
|
13 |
Growth
% |
14 |
Growth
% |
15 |
Growth
% |
16 |
Growth
% |
17 |
Growth
% |
18 |
Avg
growth% |
Jun 18 |
Sep 18 |
Dec 18 |
Quar1/
Fy18 % |
Quar2/
Fy18 % |
Sales
Sales, Revenue is realized when goods and services are sold by the company. Great company generally shows consistently increasing sales figures , growing at a rate of 12-20%.
We can divide company into various types like low Growth, Stalwarts, Fast Growers , Turn arounds , Cyclicals based on its growth rate.
Low Growth - Big Companies which are growing at a low rate , 3 to 5%
Stalwarts - Big companies which are growing at a rate of 12-20%.These are generaly powerful companies with stable business model.E.g Infosys , TCS, Cipla , Sun Pharma , Tata Motors , ICICI Bank etc.
Fast Growers - Companies which are growing at more than 20% annually.These companies are in their early stages , some of them will become Stalwarts , Some of them may not be able to sustain and may become a mediocare company.These companies are most risky to invest in but have the capability to offer maximum returns on investments.E.g Jubiliant foodworks, Thangamayil , Baja Finance, Manappuram Finance
Turn Arounds - Companies which which were doing good earlier but now struggling or Company which were in bad condition earlier but are now recovering can be put in this category.E.g Satyam is a example of company which was struggling in 2009 but it has start showing recovery from 2012.
Knowing the growth type of the company helps us to calculate the potential upside in the investment. For e,g stalwarts may give 20% returns annuals and investment is less risky , on the other hand Fast grower can become a multibagger in span of 3-4 years but he risk is higher.
|
Sales Cr |
10009.05 |
8 |
10815.08 |
9 |
11791.04 |
-5 |
11084.05 |
13 |
12614.54 |
22 |
15448.90 |
17.61 |
4268.56 |
-- |
Awaited |
27 |
0 |
Operating Profit
Operating profit or operating income is a measure of a firm's profit that excludes interest and income tax expenses.It represent the money which firm makes from operations.
Operating Profit (OP) = Revenue – Operating expenses.
Operating expenses = SGA + Depreciation + R&D Cost.
For e.g Suppose Company A has sale of 100 Cr, Cost of Goods - 60Cr , SGA - 10Cr, Depreciation - 5Cr , R&D expense - 5Cr
Then OP = GP ( Sale - Cost of Goods ) - SGA - Depreciation - R&D expense
= 100 - 60 - 10 - 5 - 5 = 20Cr
Great companies show consistently increasing Operating Profit years after years.
|
Operating Profit |
956.14 |
2 |
982.85 |
8 |
1065.97 |
-19 |
857.52 |
28 |
1102.15 |
47 |
1623.65 |
22.85 |
460.14 |
-- |
Awaited |
28 |
0 |
Eps
Earning per Share is equal to Net Profit divided by number of outstanding shares.
EPS = Net Profit / Number of outstanding shares For e.g Titan has profit of 600 Cr in Fy12 , it has 88.77 Cr outstanding shares ,so EPS
= 600/88.77 = 6.75 Rs
We should look for atleast last 5 years of EPS figure to check if the company has competitive advantage. EPS is impacted by bonus shares , splits , issuance of more numbers of shares.
Bonus and Split do not have negative impact on shareholders but if Company keeps on issuing more and more shares to meet its capital needs then the company may be in the business which is capital intensive , requires lot of money for meeting working capital needs and for plants and equipments.The Company is generating less cash than what is needed.We should be very cautious in investing these companies.
|
Eps |
8.17 |
2 |
8.35 |
11 |
9.27 |
-15 |
7.86 |
9 |
8.58 |
52 |
13.10 |
13.01 |
3.93 |
-- |
Awaited |
30 |
0 |
