Investors Who Bought Birla Tyres (NSE:BIRLATYRE) Shares A Year Ago Are Now Up 114%

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Birla Tyres Limited (NSE:BIRLATYRE) share price has soared 114% return in just a single year. Also pleasing for shareholders was the 54% gain in the last three months. We'll need to follow Birla Tyres for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Birla Tyres

Because Birla Tyres 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Birla Tyres' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Birla Tyres shareholders should be happy with the total gain of 114% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 54% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Birla Tyres (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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