If You Had Bought Ramky Infrastructure (NSE:RAMKY) Stock Three Years Ago, You'd Be Sitting On A 65% Loss, Today

Ramky Infrastructure Limited (NSE:RAMKY) shareholders will doubtless be very grateful to see the share price up 85% in the last quarter. But over the last three years we've seen a quite serious decline. Indeed, the share price is down a tragic 65% in the last three years. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.

View our latest analysis for Ramky Infrastructure

Given that Ramky Infrastructure didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years, Ramky Infrastructure saw its revenue grow by 3.5% per year, compound. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 29% during the period. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Ramky Infrastructure's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 12% in the twelve months, Ramky Infrastructure shareholders did even worse, losing 64%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 1.2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Ramky Infrastructure better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Ramky Infrastructure you should know about.

But note: Ramky Infrastructure 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. Thank you for reading.