Investors Who Bought Vikas Multicorp (NSE:VIKASMCORP) Shares A Year Ago Are Now Up 130%

The last three months have been tough on Vikas Multicorp Limited (NSE:VIKASMCORP) shareholders, who have seen the share price decline a rather worrying 50%. But that doesn't change the fact that the returns over the last year have been very strong. Like an eagle, the share price soared 130% in that time. So it may be that the share price is simply cooling off after a strong rise. More important, going forward, is how the business itself is going.

View our latest analysis for Vikas Multicorp

Given that Vikas Multicorp only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Vikas Multicorp saw its revenue shrink by 37%. So we would not have expected the share price to rise 130%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Vikas Multicorp's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Vikas Multicorp shareholders have gained 130% over the last year. Unfortunately the share price is down 50% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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. For example, we've discovered 4 warning signs for Vikas Multicorp (1 is a bit concerning!) that you should be aware of before investing here.

We will like Vikas Multicorp 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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