If You Had Bought Eveready Industries India (NSE:EVEREADY) Shares A Year Ago You'd Have Earned77% Returns

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the Eveready Industries India Limited (NSE:EVEREADY) share price is 77% higher than it was a year ago, much better than the market return of around 1.4% (not including dividends) in the same period. So that should have shareholders smiling. Unfortunately the longer term returns are not so good, with the stock falling 56% in the last three years.

Check out our latest analysis for Eveready Industries India

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Eveready Industries India was able to grow EPS by 274% in the last twelve months. It's fair to say that the share price gain of 77% did not keep pace with the EPS growth. So it seems like the market has cooled on Eveready Industries India, despite the growth. Interesting. The caution is also evident in the lowish P/E ratio of 5.52.

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

This free interactive report on Eveready Industries 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 Eveready Industries India has rewarded shareholders with a total shareholder return of 77% in the last twelve months. That certainly beats the loss of about 10% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Eveready Industries India better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Eveready Industries India you should be aware of, and 1 of them is concerning.

But note: Eveready Industries India may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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