Optimism for Parin Enterprises (NSE:PARIN) has grown this past week, despite five-year decline in earnings

For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held Parin Enterprises Limited (NSE:PARIN) shares for the last five years, while they gained 568%. And this is just one example of the epic gains achieved by some long term investors. It's also good to see the share price up 11% over the last quarter. We love happy stories like this one. The company should be really proud of that performance!

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

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We don't think that Parin Enterprises' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

We're pleased to report that Parin Enterprises shareholders have received a total shareholder return of 143% over one year. That's including the dividend. That gain is better than the annual TSR over five years, which is 46%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Parin Enterprises better, we need to consider many other factors. For example, we've discovered 4 warning signs for Parin Enterprises (2 are a bit concerning!) that you should be aware of before investing here.

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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.