If You Had Bought Vikas Multicorp (NSE:VIKASMCORP) Shares A Year Ago You'd Have Earned181% Returns

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Vikas Multicorp Limited (NSE:VIKASMCORP) share price has soared 181% return in just a single year. Shareholders are also celebrating an even better 506% rise, over the last three months. Vikas Multicorp hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Vikas Multicorp

Given that Vikas Multicorp only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. 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.

Vikas Multicorp actually shrunk its revenue over the last year, with a reduction of 28%. We're a little surprised to see the share price pop 181% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Vikas Multicorp shareholders have gained 181% over the last year. And the share price momentum remains respectable, with a gain of 506% in the last three months. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Vikas Multicorp better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Vikas Multicorp (including 1 which is is significant) .

We will like Vikas Multicorp better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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