The 19% return this week takes Asian Hotels (North)'s (NSE:ASIANHOTNR) shareholders three-year gains to 244%

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Asian Hotels (North) Limited (NSE:ASIANHOTNR) share price has flown 244% in the last three years. That sort of return is as solid as granite. It's also good to see the share price up 35% over the last quarter.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

Check out our latest analysis for Asian Hotels (North)

Given that Asian Hotels (North) didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last three years Asian Hotels (North) has grown its revenue at 32% annually. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 51% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say Asian Hotels (North) is still worth investigating - successful businesses can often keep growing for long periods.

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

This free interactive report on Asian Hotels (North)'s balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Asian Hotels (North) shareholders are up 5.6% for the year. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 19% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. 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. Even so, be aware that Asian Hotels (North) is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

But note: Asian Hotels (North) 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.

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

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.