Bombay Burmah Trading Corporation's (NSE:BBTC) three-year earnings growth trails the 26% YoY shareholder returns

The Bombay Burmah Trading Corporation, Limited (NSE:BBTC) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But over three years, the returns would have left most investors smiling In the last three years the share price is up, 99%: better than the market.

Since it's been a strong week for Bombay Burmah Trading Corporation shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Bombay Burmah Trading Corporation

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During three years of share price growth, Bombay Burmah Trading Corporation moved from a loss to profitability. So we would expect a higher share price over the period.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We know that Bombay Burmah Trading Corporation has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Bombay Burmah Trading Corporation's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Bombay Burmah Trading Corporation shareholders have received a total shareholder return of 26% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 11%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Is Bombay Burmah Trading Corporation cheap compared to other companies? These 3 valuation measures might help you decide.

We will like Bombay Burmah Trading Corporation better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.