The 11% return this week takes Nandan Denim (NSE: NDL) shareholders’ one-year earnings to 346%
While stock selection is not easy, for those who wish to persevere and learn, it is possible to buy stocks of large companies and generate wonderful returns. When an investor finds a multi-bagger (a stock that goes up over 200%) it makes a big difference to their portfolio. For example, the Nandan Denim Limited The stock price (NSE: NDL) has risen 346% in the past year, a fine return in just one year. It’s also good to see the stock price rise 65% in the last quarter. And shareholders have performed well over the long term as well, with an increase of 110% over the past three years.
The past week has turned out to be lucrative for investors at Nandan Denim, so let’s see if fundamentals have driven the company’s year-over-year performance.
Check out our latest review for Nandan Denim
To quote Buffett, “Ships will sail around the world but the Flat Earth Society will thrive. There will continue to be wide spreads between price and value in the market … ”By comparing earnings per share (EPS) and changes in stock prices over time, we can get a feel for the changes in investor attitudes towards a company over time.
Nandan Denim has gone from loss to profit over the past year.
When a company has just transitioned to profitability, growing earnings per share is not always the best way to look at the evolution of the share price.
We believe the 44% revenue growth may be of interest to some investors. We are seeing some companies cut their profits in order to accelerate revenue growth.
Below you can see how earnings and income have evolved over time (see the exact values by clicking on the image).
This free Nandan Denim’s interactive balance sheet strength report is a great place to start if you want to delve deeper into the stock market.
A different perspective
It is good to see that Nandan Denim has rewarded its shareholders with a total shareholder return of 346% over the past twelve months. As the 1-year TSR is better than the 5-year TSR (the latter standing at 1.1% per year), it seems that the performance of the stock has improved in recent times. Since stock price dynamics remain strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Concrete example: we have spotted 4 warning signs for Nandan Denim you need to be aware of this, and 2 of them cannot be ignored.
We’ll like Nandan Denim better if we see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on the IN exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.