Stock Analysis

Introducing Vishwaraj Sugar Industries (NSE:VISHWARAJ), The Stock That Zoomed 101% In The Last Year

NSEI:VISHWARAJ
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Vishwaraj Sugar Industries Limited (NSE:VISHWARAJ) share price has soared 101% return in just a single year. Also pleasing for shareholders was the 31% gain in the last three months. But this could be related to the strong market, which is up 22% in the last three months. Vishwaraj Sugar Industries hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Vishwaraj Sugar Industries

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Vishwaraj Sugar Industries went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

However the year on year revenue growth of 4.1% would help. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

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:VISHWARAJ Earnings and Revenue Growth February 10th 2021

Take a more thorough look at Vishwaraj Sugar Industries' financial health with this free report on its balance sheet.

A Different Perspective

Vishwaraj Sugar Industries boasts a total shareholder return of 101% for the last year. And the share price momentum remains respectable, with a gain of 31% in the last three months. This suggests the company is continuing to win over new investors. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Vishwaraj Sugar Industries (of which 1 is potentially serious!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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