Did You Miss IndiaMART InterMESH's (NSE:INDIAMART) Impressive 285% Share Price Gain?

By
Simply Wall St
Published
February 11, 2021
NSEI:INDIAMART
Source: Shutterstock

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the IndiaMART InterMESH Limited (NSE:INDIAMART) share price has soared 285% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 88% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. IndiaMART InterMESH hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for IndiaMART InterMESH

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year IndiaMART InterMESH grew its earnings per share (EPS) by 103%. The share price gain of 285% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock. The fairly generous P/E ratio of 100.96 also points to this optimism.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
NSEI:INDIAMART Earnings Per Share Growth February 12th 2021

We know that IndiaMART InterMESH has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that IndiaMART InterMESH shareholders have gained 287% over the last year, including dividends. And the share price momentum remains respectable, with a gain of 88% in the last three months. 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. It's always interesting to track share price performance over the longer term. But to understand IndiaMART InterMESH better, we need to consider many other factors. For example, we've discovered 3 warning signs for IndiaMART InterMESH that you should be aware of before investing here.

Of course IndiaMART InterMESH may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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