If You Had Bought Rossell India (NSE:ROSSELLIND) Stock A Year Ago, You Could Pocket A 163% Gain Today

The Rossell India Limited (NSE:ROSSELLIND) share price has had a bad week, falling 16%. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 163%. So it is important to view the recent reduction in price through that lense. The real question is whether the business is trending in the right direction.

Check out our latest analysis for Rossell India

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Rossell India was able to grow EPS by 168% in the last twelve months. This EPS growth is remarkably close to the 163% increase in the share price. This makes us think the market hasn't really changed its sentiment around the company, in the last year. We don't think its coincidental that the share price is growing at a similar rate to the earnings per share.

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

Dive deeper into Rossell India's key metrics by checking this interactive graph of Rossell India's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Rossell India shareholders have received a total shareholder return of 164% over the last year. That's including the dividend. That's better than the annualised return of 8.8% 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. It's always interesting to track share price performance over the longer term. But to understand Rossell India better, we need to consider many other factors. Take risks, for example - Rossell India has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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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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