The Man Industries (India) (NSE:MANINDS) Share Price Is Up 40% And Shareholders Are Holding On

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Man Industries (India) Limited (NSE:MANINDS) share price is up 40% in the last year, clearly besting the market return of around 13% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! On the other hand, longer term shareholders have had a tougher run, with the stock falling 35% in three years.

Check out our latest analysis for Man Industries (India)

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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 Man Industries (India) grew its earnings per share (EPS) by 88%. It's fair to say that the share price gain of 40% did not keep pace with the EPS growth. So it seems like the market has cooled on Man Industries (India), despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 5.25.

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

Dive deeper into Man Industries (India)'s key metrics by checking this interactive graph of Man Industries (India)'s earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Man Industries (India)'s TSR for the last year was 48%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that Man Industries (India) shareholders have received a total shareholder return of 48% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 7% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Man Industries (India) better, we need to consider many other factors. For instance, we've identified 2 warning signs for Man Industries (India) that you should be aware of.

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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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