Ramky Infrastructure's (NSE:RAMKY) Shareholders Are Down 75% On Their Shares

Ramky Infrastructure Limited (NSE:RAMKY) shareholders will doubtless be very grateful to see the share price up 85% in the last quarter. But the last three years have seen a terrible decline. To wit, the share price sky-dived 75% in that time. So it sure is nice to see a bit of an improvement. But the more important question is whether the underlying business can justify a higher price still.

View our latest analysis for Ramky Infrastructure

Given that Ramky Infrastructure 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Ramky Infrastructure's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Ramky Infrastructure shareholders have received a total shareholder return of 62% over one year. That's better than the annualised return of 8% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Ramky Infrastructure (of which 1 makes us a bit uncomfortable!) you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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