RPSG Ventures (NSE:RPSGVENT) spikes 15% this week, taking five-year gains to 97%

If you buy and hold a stock for many years, you'd hope to be making a profit. Furthermore, you'd generally like to see the share price rise faster than the market. Unfortunately for shareholders, while the RPSG Ventures Limited (NSE:RPSGVENT) share price is up 97% in the last five years, that's less than the market return. However, more recent buyers should be happy with the increase of 48% over the last year.

Since it's been a strong week for RPSG Ventures shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for RPSG Ventures

RPSG Ventures wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

For the last half decade, RPSG Ventures can boast revenue growth at a rate of 14% per year. That's a pretty good long term growth rate. The annual gain of 15% over five years is better than nothing, but falls short of the market. You could even argue that the share price was over optimistic, previously.

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

If you are thinking of buying or selling RPSG Ventures stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

RPSG Ventures shareholders have received returns of 48% over twelve months, which isn't far from the general market return. That gain looks pretty satisfying, and it is even better than the five-year TSR of 15% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. 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 instance, we've identified 2 warning signs for RPSG Ventures (1 is significant) that you should be aware of.

But note: RPSG Ventures may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com