Asian Granito India (NSE:ASIANTILES shareholders incur further losses as stock declines 15% this week, taking five-year losses to 57%

Generally speaking long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. To wit, the Asian Granito India Limited (NSE:ASIANTILES) share price managed to fall 73% over five long years. That's not a lot of fun for true believers. Even worse, it's down 22% in about a month, which isn't fun at all.

If the past week is anything to go by, investor sentiment for Asian Granito India isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Asian Granito India

Because Asian Granito India 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Over five years, Asian Granito India grew its revenue at 6.7% per year. That's a fairly respectable growth rate. So the stock price fall of 12% per year seems pretty steep. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.

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

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

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Asian Granito India's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Asian Granito India's TSR of was a loss of 57% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Asian Granito India shareholders are down 9.3% for the year, but the market itself is up 44%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 9% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. 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. Case in point: We've spotted 2 warning signs for Asian Granito India you should be aware of, and 1 of them is a bit concerning.

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 Indian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.