Akshar Spintex (NSE:AKSHAR shareholders incur further losses as stock declines 12% this week, taking one-year losses to 66%

The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Akshar Spintex Limited (NSE:AKSHAR) have suffered share price declines over the last year. To wit the share price is down 77% in that time. Akshar Spintex may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 31% in the last 90 days.

Since Akshar Spintex has shed ₹55m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

Because Akshar Spintex made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Akshar Spintex's revenue didn't grow at all in the last year. In fact, it fell 18%. That looks pretty grim, at a glance. The share price fall of 77% in a year tells the story. Holders should not lose the lesson: loss making companies should grow revenue. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at Akshar Spintex's financial health with this free report on its balance sheet.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Akshar Spintex, it has a TSR of -66% for the last 1 year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

While Akshar Spintex shareholders are down 66% for the year (even including dividends), the market itself is up 4.9%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 31% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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 4 warning signs for Akshar Spintex (2 are potentially serious) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.