Introducing MMTC (NSE:MMTC), A Stock That Climbed 49% 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. For example, the MMTC Limited (NSE:MMTC) share price is up 49% in the last year, clearly besting the market return of around 18% (not including dividends). That's a solid performance by our standards! Unfortunately the longer term returns are not so good, with the stock falling 32% in the last three years.

View our latest analysis for MMTC

Given that MMTC didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

MMTC actually shrunk its revenue over the last year, with a reduction of 30%. Despite the lack of revenue growth, the stock has returned a solid 49% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

Take a more thorough look at MMTC's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that MMTC has rewarded shareholders with a total shareholder return of 49% in the last twelve months. That gain is better than the annual TSR over five years, which is 4%. Therefore it seems like sentiment around the company has been positive lately. 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 MMTC better, we need to consider many other factors. For example, we've discovered 2 warning signs for MMTC (1 is a bit concerning!) that you should be aware of before investing here.

We will like MMTC better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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