Announcing: Hindustan Foods (NSE:HNDFDS) Stock Increased An Energizing 137% In The Last Year

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Hindustan Foods Limited (NSE:HNDFDS) share price has soared 137% return in just a single year. It's also good to see the share price up 64% over the last quarter. Hindustan Foods hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for Hindustan Foods

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year Hindustan Foods grew its earnings per share (EPS) by 30%. The share price gain of 137% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock. The fairly generous P/E ratio of 124.26 also points to this optimism.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Hindustan Foods' earnings, revenue and cash flow.

A Different Perspective

Hindustan Foods shareholders should be happy with the total gain of 137% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 64% in that time. This suggests the company is continuing to win over new investors. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Hindustan Foods (2 can't be ignored!) that you should be aware of before investing here.

But note: Hindustan Foods 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 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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