Acrysil (NSE:ACRYSIL) stock performs better than its underlying earnings growth over last year

By
Simply Wall St
Published
March 18, 2022
NSEI:ACRYSIL
Source: Shutterstock

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Acrysil Limited (NSE:ACRYSIL) share price had more than doubled in just one year - up 152%. In more good news, the share price has risen 12% in thirty days. We'll need to follow Acrysil for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Acrysil

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year Acrysil grew its earnings per share (EPS) by 105%. The share price gain of 152% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
NSEI:ACRYSIL Earnings Per Share Growth March 18th 2022

We know that Acrysil has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Acrysil shareholders have gained 153% over the last year, including dividends. We regret to report that the share price is down 6.8% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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 example, we've discovered 1 warning sign for Acrysil 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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