Shareholders Are Thrilled That The Greenpanel Industries (NSE:GREENPANEL) Share Price Increased 142%

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Greenpanel Industries Limited (NSE:GREENPANEL) share price has soared 142% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 112% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. We'll need to follow Greenpanel Industries for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

See our latest analysis for Greenpanel Industries

Given that Greenpanel Industries 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Greenpanel Industries saw its revenue grow by 6.6%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 142%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just 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).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Greenpanel Industries boasts a total shareholder return of 142% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 112% in that time. This suggests the company is continuing to win over new investors. 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. For instance, we've identified 2 warning signs for Greenpanel Industries (1 makes us a bit uncomfortable) that you should be aware of.

Of course Greenpanel Industries 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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