Can You Imagine How Jubilant Vidhi Specialty Food Ingredients' (NSE:VIDHIING) Shareholders Feel About Its 124% Share Price Gain?

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Vidhi Specialty Food Ingredients Limited (NSE:VIDHIING) share price has soared 124% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 103% in about a quarter. It is also impressive that the stock is up 88% over three years, adding to the sense that it is a real winner.

View our latest analysis for Vidhi Specialty Food Ingredients

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Vidhi Specialty Food Ingredients was able to grow EPS by 13% in the last twelve months. The share price gain of 124% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into Vidhi Specialty Food Ingredients' key metrics by checking this interactive graph of Vidhi Specialty Food Ingredients's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Vidhi Specialty Food Ingredients' TSR for the last year was 127%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that Vidhi Specialty Food Ingredients rewarded shareholders with a total shareholder return of 127% over the last year. That's including the dividend. That's better than the annualized TSR of 25% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Vidhi Specialty Food Ingredients on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Vidhi Specialty Food Ingredients better, we need to consider many other factors. For instance, we've identified 3 warning signs for Vidhi Specialty Food Ingredients that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

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