If You Had Bought Confidence Petroleum India (NSE:CONFIPET) Stock A Year Ago, You Could Pocket A 103% Gain Today

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 Confidence Petroleum India Limited (NSE:CONFIPET) share price had more than doubled in just one year - up 103%. On top of that, the share price is up 56% in about a quarter. We'll need to follow Confidence Petroleum India 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 Confidence Petroleum India

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the last twelve months, Confidence Petroleum India actually shrank its EPS by 57%.

So we don't think that investors are paying too much attention to EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

We are skeptical of the suggestion that the 0.2% dividend yield would entice buyers to the stock. Unfortunately Confidence Petroleum India's fell 28% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Confidence Petroleum India's earnings, revenue and cash flow.

A Different Perspective

Confidence Petroleum India shareholders should be happy with the total gain of 103% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 56% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Confidence Petroleum India better, we need to consider many other factors. For instance, we've identified 2 warning signs for Confidence Petroleum India that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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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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