Recent 12% pullback isn't enough to hurt long-term Inventure Growth & Securities (NSE:INVENTURE) shareholders, they're still up 308% over 3 years

By
Simply Wall St
Published
January 25, 2022
NSEI:INVENTURE
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Inventure Growth & Securities Limited (NSE:INVENTURE) shareholders might be concerned after seeing the share price drop 12% in the last week. But that doesn't change the fact that the returns over the last three years have been very strong. In three years the stock price has launched 299% higher: a great result. So the recent fall in the share price should be viewed in that context. The thing to consider is whether the underlying business is doing well enough to support the current price.

While the stock has fallen 12% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Inventure Growth & Securities

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 three years of share price growth, Inventure Growth & Securities moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
NSEI:INVENTURE Earnings Per Share Growth January 25th 2022

This free interactive report on Inventure Growth & Securities' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Inventure Growth & Securities' total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Inventure Growth & Securities shareholders, and that cash payout contributed to why its TSR of 308%, over the last 3 years, is better than the share price return.

A Different Perspective

It's good to see that Inventure Growth & Securities has rewarded shareholders with a total shareholder return of 280% in the last twelve months. That's better than the annualised return of 25% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 Inventure Growth & Securities is showing 3 warning signs in our investment analysis , you should know about...

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

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