The JMT Auto (NSE:JMTAUTOLTD) Share Price Is Down 93% So Some Shareholders Are Rather Upset

As an investor, mistakes are inevitable. But really big losses can really drag down an overall portfolio. So consider, for a moment, the misfortune of JMT Auto Limited (NSE:JMTAUTOLTD) investors who have held the stock for three years as it declined a whopping 93%. That would be a disturbing experience. And more recent buyers are having a tough time too, with a drop of 66% in the last year.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

View 3 warning signs we detected for JMT Auto

JMT Auto isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

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

Take a more thorough look at JMT Auto's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market gained around 7.3% in the last year, JMT Auto shareholders lost 66%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 35% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. For example, we've discovered 3 warning signs for JMT Auto (of which 3 are major) which any shareholder or potential investor should be aware of.

We will like JMT Auto 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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