Himatsingka Seide (NSE:HIMATSEIDE) soars 16% this week, taking one-year gains to 233%

By
Simply Wall St
Published
September 27, 2021
NSEI:HIMATSEIDE
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. Take, for example Himatsingka Seide Limited (NSE:HIMATSEIDE). Its share price is already up an impressive 233% in the last twelve months. On top of that, the share price is up 54% in about a quarter. The longer term returns have not been as good, with the stock price only 22% higher than it was three years ago.

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

See our latest analysis for Himatsingka Seide

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Himatsingka Seide grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We are skeptical of the suggestion that the 0.2% dividend yield would entice buyers to the stock. We think that the revenue growth of 53% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

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

earnings-and-revenue-growth
NSEI:HIMATSEIDE Earnings and Revenue Growth September 28th 2021

We know that Himatsingka Seide has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Himatsingka Seide in this interactive graph of future profit estimates.

A Different Perspective

It's good to see that Himatsingka Seide has rewarded shareholders with a total shareholder return of 233% in the last twelve months. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.0% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Himatsingka Seide better, we need to consider many other factors. Even so, be aware that Himatsingka Seide is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

But note: Himatsingka Seide 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 IN exchanges.

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 (at) simplywallst.com.

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Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.