AYM Syntex (NSE:AYMSYNTEX) shareholder returns have been massive, earning 359% in 5 years

It hasn't been the best quarter for AYM Syntex Limited (NSE:AYMSYNTEX) shareholders, since the share price has fallen 15% in that time. But that doesn't undermine the fantastic longer term performance (measured over five years). In that time, the share price has soared some 359% higher! Arguably, the recent fall is to be expected after such a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 45% decline over the last twelve months.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

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While AYM Syntex made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 5 years AYM Syntex saw its revenue grow at 6.5% per year. That's a pretty good long term growth rate. Arguably it's more than reflected in the very strong share price gain of 36% a year over a half a decade. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!

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

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

A Different Perspective

While the broader market lost about 0.2% in the twelve months, AYM Syntex shareholders did even worse, losing 45%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 36% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand AYM Syntex better, we need to consider many other factors. For instance, we've identified 2 warning signs for AYM Syntex that you should be aware of.

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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.