The Murudeshwar Ceramics (NSE:MURUDCERA) Share Price Is Down 58% So Some Shareholders Are Wishing They Sold

The nature of investing is that you win some, and you lose some. And unfortunately for Murudeshwar Ceramics Limited (NSE:MURUDCERA) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 58% in that time. Notably, shareholders had a tough run over the longer term, too, with a drop of 47% in the last three years. The falls have accelerated recently, with the share price down 32% in the last three months. This could be related to the recent financial results – you can catch up on the most recent data by reading our company report.

Check out our latest analysis for Murudeshwar Ceramics

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. 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.

Unhappily, Murudeshwar Ceramics had to report a 8.6% decline in EPS over the last year. This reduction in EPS is not as bad as the 58% share price fall. So it seems the market was too confident about the business, a year ago.

NSEI:MURUDCERA Past and Future Earnings, August 31st 2019
NSEI:MURUDCERA Past and Future Earnings, August 31st 2019

It might be well worthwhile taking a look at our free report on Murudeshwar Ceramics’s earnings, revenue and cash flow.

A Different Perspective

We regret to report that Murudeshwar Ceramics shareholders are down 58% for the year. Unfortunately, that’s worse than the broader market decline of 13%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. Unfortunately, last year’s performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7.9% over the last half decade. We realise that Buffett has said investors should ‘buy when there is blood on the streets’, but we caution that investors should first be sure they are buying a high quality businesses. Is Murudeshwar Ceramics cheap compared to other companies? These 3 valuation measures might help you decide.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.