If You Had Bought AstraZeneca Pharma India (NSE:ASTRAZEN) Stock Three Years Ago, You Could Pocket A 298% Gain Today

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the AstraZeneca Pharma India Limited (NSE:ASTRAZEN) share price has soared 298% in the last three years. Most would be happy with that. Also pleasing for shareholders was the 18% gain in the last three months. But this could be related to the strong market, which is up 23% in the last three months.

View our latest analysis for AstraZeneca Pharma India

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During three years of share price growth, AstraZeneca Pharma India achieved compound earnings per share growth of 58% per year. This EPS growth is remarkably close to the 59% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. Quite to the contrary, the share price has arguably reflected the EPS growth.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

This free interactive report on AstraZeneca Pharma India's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that AstraZeneca Pharma India has rewarded shareholders with a total shareholder return of 92% in the last twelve months. That's including the dividend. That's better than the annualised return of 25% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. You could get a better understanding of AstraZeneca Pharma India's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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