The Nath Bio-Genes (India) (NSE:NATHBIOGEN) Share Price Is Up 149% And Shareholders Are Boasting About It

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Nath Bio-Genes (India) Limited (NSE:NATHBIOGEN) stock is up an impressive 149% over the last five years.

View our latest analysis for Nath Bio-Genes (India)

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Over half a decade, Nath Bio-Genes (India) managed to grow its earnings per share at 33% a year. This EPS growth is higher than the 20% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. The reasonably low P/E ratio of 9.36 also suggests market apprehension.

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

Dive deeper into Nath Bio-Genes (India)'s key metrics by checking this interactive graph of Nath Bio-Genes (India)'s earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 18% in the last year, Nath Bio-Genes (India) shareholders lost 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 20%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Nath Bio-Genes (India) better, we need to consider many other factors. For example, we've discovered 1 warning sign for Nath Bio-Genes (India) that you should be aware of before investing here.

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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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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