Update: Wendt (India) (NSE:WENDT) Stock Gained 17% In The Last Year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Wendt (India) Limited (NSE:WENDT) share price is up 17% in the last year, clearly besting the market return of around 2.0% (not including dividends). That's a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 1.7% lower than it was three years ago.

Check out our latest analysis for Wendt (India)

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year, Wendt (India) actually saw its earnings per share drop 50%.

This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

We are skeptical of the suggestion that the 1.0% dividend yield would entice buyers to the stock. Unfortunately Wendt (India)'s fell 22% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on Wendt (India)'s balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Wendt (India)'s total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Wendt (India)'s TSR of 18% for the year exceeded its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that Wendt (India) shareholders have received a total shareholder return of 18% over one year. That's including the dividend. That's better than the annualised return of 3.0% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Wendt (India) better, we need to consider many other factors. For example, we've discovered 4 warning signs for Wendt (India) that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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