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Gruh Finance Limited Growth Analysis

NSE:GRUH | FINANCE

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Revenue and Earnings Growth

2-year historical trend showing revenue and diluted EPS

FY 2018 - FY 2019

Gruh Finance Limited's revenue grew 20.1% YoY in FY2019, with EPS growing 23.2%, strong top-line and bottom-line expansion.

Understanding Revenue and EPS Growth

In FY 2019, Gruh Finance Limited's revenue grew by 20.1% year-over-year, while EPS grew by 23.2%. Revenue Growth: Shows Gruh Finance Limited's top-line expansion over time. Consistent revenue growth indicates market share gains, successful product launches, or pricing power. Look for steady upward trends rather than erratic spikes.

EPS Growth: Earnings Per Share growth measures profitability on a per-share basis. Growing EPS faster than revenue indicates improving profit margins and operational efficiency. The ideal scenario is both metrics growing together at healthy rates.

Compound Annual Growth Rate (CAGR)

The Compound Annual Growth Rate shows the mean annual growth rate over specified time periods.

METRIC 1-YEAR CAGR 5-YEAR CAGR 10-YEAR CAGR
Revenue
+20.1% Upgrade Upgrade
Income
+23.3% Upgrade Upgrade
EPS
+23.2% Upgrade Upgrade

• CAGR calculations exclude periods with negative starting values or where values cross from positive to negative

• Green indicates positive growth, red indicates decline

Gruh Finance Limited's 5-year revenue CAGR of 19.1% reflects strong sustained growth.

Understanding CAGR

CAGR smooths out year-to-year volatility to show the steady annual growth rate over a period. 1-year captures recent momentum, 5-year reveals business cycle performance, and 10-year reflects durable competitive advantages.

Revenue CAGR above 15%, and EPS CAGR above 20% are generally considered excellent. Compare across all three periods and with industry peers for context.

Revenue & Operations

Trend showing Gruh Finance Limited's revenue alongside key operational metrics

FY 2018 - FY 2019

Understanding Revenue & Operations Metrics

Account Receivables: Money owed to Gruh Finance Limited by customers for goods or services delivered. Rising receivables relative to revenue may indicate collection issues or aggressive revenue recognition. Ideally, receivables should grow proportionally with revenue.

Inventories: Value of raw materials, work-in-progress, and finished goods. High inventory levels relative to revenue may suggest slow-moving stock or overproduction. Low inventory with rising revenue indicates efficient inventory management and strong demand.

Retained Earnings Growth

Year-over-year growth in retained earnings showing Gruh Finance Limited's profit accumulation

FY 2018 - FY 2019

Gruh Finance Limited's retained earnings grew 33.4% YoY in FY2019, maintaining a consistent growth track record.

Over 2 years (FY2018–FY2019), retained earnings grew by 33.4%, from 13.08B to 17.45B.

Understanding Retained Earnings Growth

In FY 2019, Gruh Finance Limited's retained earnings grew by 33.4% year-over-year. What are Retained Earnings: Retained earnings represent the cumulative net income that Gruh Finance Limited has retained, rather than distributed to shareholders as dividends. It reflects Gruh Finance Limited's ability to reinvest profits back into the business for growth, debt reduction, or other purposes.

Growth Interpretation: Consistent growth in retained earnings indicates strong profitability and effective capital allocation. Negative growth may signal losses, high dividend payouts, or share buybacks. Compare with revenue and net income growth to assess overall financial health.

Dividend Per Share Growth

Year-over-year growth in dividend per share showing Gruh Finance Limited's dividend payout trend

FY 2018 - FY 2019

Gruh Finance Limited's dividend per share increased 18.3% YoY in FY2019, having paid dividends in 8 of the last 8 years.

Understanding Dividend Per Share Growth

In FY 2019, Gruh Finance Limited paid a dividend of Rs. 1.98 per share. What is DPS: Dividend Per Share (DPS) represents the total dividends paid out to shareholders divided by the number of outstanding shares. It indicates how much cash return investors receive for each share they own.

Growth Interpretation: Consistent DPS growth indicates management's confidence in future earnings and commitment to rewarding shareholders. Companies with steady dividend growth are often financially stable and mature. Compare with earnings growth to assess dividend sustainability.

Days Sales Outstanding (DSO)

Efficiency metric showing average days to collect payment from customers

FY 2018 - FY 2019

Understanding Days Sales Outstanding

What is DSO: Days Sales Outstanding measures the average number of days it takes Gruh Finance Limited to collect payment after making a sale. Formula: (Account Receivables / Revenue) × 365. Lower DSO indicates faster cash collection and better working capital management.

Industry Context: DSO varies by industry. B2B companies typically have 30-60 days DSO, while B2C companies often have lower DSO. Compare with industry peers and payment terms offered to customers.

Interpretation: Increasing DSO may indicate collection problems, aggressive revenue recognition, or relaxed credit terms. Decreasing DSO suggests improving collection efficiency or stricter credit policies. Sudden spikes warrant investigation into customer creditworthiness or sales quality.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2019