If you believe that markets are even remotely efficient, then over the long term, one would expect a company's share price to be influenced by its earnings per share (EPS) performance. Therefore, it is understandable that experienced investors pay close attention to company EPS when conducting investment research. It is certainly encouraging to observe that Indian Bank has achieved an impressive annual EPS growth rate of 33% over the past three years. Generally speaking, if a company can sustain such growth, it tends to result in satisfied shareholders.
To gain further insight into the quality of the company's growth, it can be helpful to examine earnings before interest and tax (EBIT) margins, as well as revenue growth. It should be noted that Indian Bank's revenue from operations was lower than its revenue in the previous twelve months, which could potentially affect the analysis of its margins. Nevertheless, Indian Bank has managed to maintain stable EBIT margins over the past year, while simultaneously achieving a 28% growth in revenue to ₹187b. This progress indicates positive momentum for the company.
I see a long term opportunity in Indian Bank
To gain further insight into the quality of the company's growth, it can be helpful to examine earnings before interest and tax (EBIT) margins, as well as revenue growth. It should be noted that Indian Bank's revenue from operations was lower than its revenue in the previous twelve months, which could potentially affect the analysis of its margins. Nevertheless, Indian Bank has managed to maintain stable EBIT margins over the past year, while simultaneously achieving a 28% growth in revenue to ₹187b. This progress indicates positive momentum for the company.
I see a long term opportunity in Indian Bank