The Network18 Media & Investments (NSE:NETWORK18) Share Price Is Up 77% And Shareholders Are Holding On

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Network18 Media & Investments Limited (NSE:NETWORK18) share price is up 77% in the last year, clearly besting the market return of around 7.8% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! In contrast, the longer term returns are negative, since the share price is 20% lower than it was three years ago.

Check out our latest analysis for Network18 Media & Investments

Network18 Media & Investments wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Network18 Media & Investments actually shrunk its revenue over the last year, with a reduction of 6.1%. The stock is up 77% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

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

If you are thinking of buying or selling Network18 Media & Investments stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Network18 Media & Investments shareholders have received a total shareholder return of 77% over the last year. There's no doubt those recent returns are much better than the TSR loss of 2.8% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Network18 Media & Investments (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

But note: Network18 Media & Investments may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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