The Indus Holdings (CSE:INDS) Share Price Is Up 280% And Shareholders Are Boasting About It

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example Indus Holdings, Inc. (CSE:INDS). Its share price is already up an impressive 280% in the last twelve months. Also pleasing for shareholders was the 48% gain in the last three months. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for Indus Holdings

Because Indus Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Indus Holdings saw its revenue grow by 36%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 280%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Indus Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Indus Holdings shareholders should be happy with the total gain of 280% over the last twelve months. The more recent returns haven't been as impressive as the longer term returns, coming in at just 48%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). 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 3 warning signs for Indus Holdings (1 doesn't sit too well with us) that you should be aware of.

But note: Indus Holdings 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 CA 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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