If You Had Bought Dalmia Bharat Sugar and Industries (NSE:DALMIASUG) Stock A Year Ago, You Could Pocket A 196% Gain Today

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) share price has soared 196% in the last year. Most would be very happy with that, especially in just one year! In more good news, the share price has risen -5.4% in thirty days. Also impressive, the stock is up 128% over three years, making long term shareholders happy, too.

See our latest analysis for Dalmia Bharat Sugar and Industries

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Dalmia Bharat Sugar and Industries was able to grow EPS by 61% in the last twelve months. This EPS growth is significantly lower than the 196% increase in the share price. This indicates that the market is now more optimistic about the stock.

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

It is of course excellent to see how Dalmia Bharat Sugar and Industries has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Dalmia Bharat Sugar and Industries shareholders have received a total shareholder return of 196% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 12% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Dalmia Bharat Sugar and Industries better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Dalmia Bharat Sugar and Industries (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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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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