Update: Man Industries (India) (NSE:MANINDS) Stock Gained 60% In The Last Year

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. To wit, the Man Industries (India) Limited (NSE:MANINDS) share price is 60% higher than it was a year ago, much better than the market return of around 0.2% (not including dividends) in the same period. So that should have shareholders smiling. Zooming out, the stock is actually down 32% in the last three years.

See our latest analysis for Man Industries (India)

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

During the last year Man Industries (India) grew its earnings per share (EPS) by 165%. This EPS growth is significantly higher than the 60% increase in the share price. Therefore, it seems the market isn't as excited about Man Industries (India) as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 4.70.

The graphic below depicts how EPS has changed over time (unveil 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?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Man Industries (India)'s TSR for the last year was 64%, 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 64% over the last year. And that does include the dividend. Notably the five-year annualised TSR loss of 2% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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 4 warning signs for Man Industries (India) you should be aware of, and 1 of them is a bit unpleasant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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