If You Had Bought TV18 Broadcast's (NSE:TV18BRDCST) Shares Three Years Ago You Would Be Down 31%

For many investors, the main point of stock picking is to generate higher returns than the overall market. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. Unfortunately, that's been the case for longer term TV18 Broadcast Limited (NSE:TV18BRDCST) shareholders, since the share price is down 31% in the last three years, falling well short of the market decline of around 2.0%. Shareholders have had an even rougher run lately, with the share price down 22% in the last 90 days.

View our latest analysis for TV18 Broadcast

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the unfortunate three years of share price decline, TV18 Broadcast actually saw its earnings per share (EPS) improve by 134% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Or else the company was over-hyped in the past, and so its growth has disappointed.

It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price.

Revenue is actually up 49% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating TV18 Broadcast further; while we may be missing something on this analysis, there might also be an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We know that TV18 Broadcast has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at TV18 Broadcast's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that TV18 Broadcast has rewarded shareholders with a total shareholder return of 28% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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 - TV18 Broadcast has 1 warning sign we think you should be aware of.

Of course TV18 Broadcast 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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