Stock Analysis

If You Had Bought Bajaj Hindusthan Sugar's (NSE:BAJAJHIND) Shares Three Years Ago You Would Be Down 59%

NSEI:BAJAJHIND
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It is a pleasure to report that the Bajaj Hindusthan Sugar Limited (NSE:BAJAJHIND) is up 41% in the last quarter. But that doesn't change the fact that the returns over the last three years have been disappointing. Indeed, the share price is down a tragic 59% in the last three years. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

View our latest analysis for Bajaj Hindusthan Sugar

Because Bajaj Hindusthan Sugar made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NSEI:BAJAJHIND Earnings and Revenue Growth August 28th 2020

Take a more thorough look at Bajaj Hindusthan Sugar's financial health with this free report on its balance sheet.

A Different Perspective

Bajaj Hindusthan Sugar shareholders have received returns of 11% over twelve months, which isn't far from the general market return. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 8.8% over the last five years. We're pretty skeptical of turnaround stories, but it's good to see the recent share price recovery. 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. Take risks, for example - Bajaj Hindusthan Sugar has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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Discover if Bajaj Hindusthan Sugar might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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This article by Simply Wall St is general in nature. 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.
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