Here's Why Cyber Media Research & Services (NSE:CMRSL) Has Caught The Eye Of Investors

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

In contrast to all that, many investors prefer to focus on companies like Cyber Media Research & Services (NSE:CMRSL), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Cyber Media Research & Services with the means to add long-term value to shareholders.

View our latest analysis for Cyber Media Research & Services

Cyber Media Research & Services' Improving Profits

Cyber Media Research & Services has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. Thus, it makes sense to focus on more recent growth rates, instead. Cyber Media Research & Services' EPS shot up from ₹6.43 to ₹9.71; a result that's bound to keep shareholders happy. That's a impressive gain of 51%.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Cyber Media Research & Services achieved similar EBIT margins to last year, revenue grew by a solid 32% to ₹842m. That's encouraging news for the company!

The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.

Cyber Media Research & Services isn't a huge company, given its market capitalisation of ₹394m. That makes it extra important to check on its balance sheet strength.

Are Cyber Media Research & Services Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, small purchases are not always indicative of conviction, and insiders don't always get it right.

We note that Cyber Media Research & Services insiders spent ₹5.4m on stock, over the last year; in contrast, we didn't see any selling. This is a good look for the company as it paints an optimistic picture for the future. It is also worth noting that it was company insider Mina Chand who made the biggest single purchase, worth ₹1.2m, paying ₹120 per share.

Does Cyber Media Research & Services Deserve A Spot On Your Watchlist?

You can't deny that Cyber Media Research & Services has grown its earnings per share at a very impressive rate. That's attractive. The growth rate should be enticing enough to consider researching the company, and the insider buying is a great added bonus. So on this analysis, Cyber Media Research & Services is probably worth spending some time on. Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Cyber Media Research & Services (2 can't be ignored) you should be aware of.

There are plenty of other companies that have insiders buying up shares. So if you like the sound of Cyber Media Research & Services, you'll probably love this curated collection of companies in IN that have witnessed growth alongside insider buying in the last three months.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.