If You Had Bought TAJGVK Hotels & Resorts (NSE:TAJGVK) Stock Five Years Ago, You Could Pocket A 68% Gain Today

TAJGVK Hotels & Resorts Limited (NSE:TAJGVK) shareholders have seen the share price descend 12% over the month. But that doesn't change the fact that the returns over the last five years have been pleasing. Its return of 68% has certainly bested the market return! While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 24% drop, in the last year.

View our latest analysis for TAJGVK Hotels & Resorts

While TAJGVK Hotels & Resorts made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 5 years TAJGVK Hotels & Resorts saw its revenue grow at 4.0% per year. That's not a very high growth rate considering the bottom line. The modest growth is probably broadly reflected in the share price, which is up 11%, per year over 5 years. The business could be one worth watching but we generally prefer faster revenue growth.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at TAJGVK Hotels & Resorts' financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that TAJGVK Hotels & Resorts shareholders are down 24% for the year. Unfortunately, that's worse than the broader market decline of 0.5%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 11%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - TAJGVK Hotels & Resorts has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Of course TAJGVK Hotels & Resorts may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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