What Type Of Returns Would Kolte-Patil Developers'(NSE:KOLTEPATIL) Shareholders Have Earned If They Purchased Their SharesYear Ago?

While it may not be enough for some shareholders, we think it is good to see the Kolte-Patil Developers Limited (NSE:KOLTEPATIL) share price up 15% in a single quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 31% in the last year, well below the market return.

See our latest analysis for Kolte-Patil Developers

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Kolte-Patil Developers fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. However, there may be an opportunity for investors if the company can recover.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Kolte-Patil Developers' key metrics by checking this interactive graph of Kolte-Patil Developers's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Kolte-Patil Developers' share price action, but we should also mention its total shareholder return (TSR). 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. Kolte-Patil Developers' TSR of was a loss of 31% for the year. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Investors in Kolte-Patil Developers had a tough year, with a total loss of 31%, against a market gain of about 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 2.0% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. Case in point: We've spotted 1 warning sign for Kolte-Patil Developers you should be aware of.

We will like Kolte-Patil Developers 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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