Sastasundar Ventures (NSE:SASTASUNDR) shareholder returns have been enviable, earning 311% in 5 years

Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. Just think about the savvy investors who held Sastasundar Ventures Limited (NSE:SASTASUNDR) shares for the last five years, while they gained 311%. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 52% in about a quarter.

Since the stock has added ₹2.5b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for Sastasundar Ventures

Given that Sastasundar Ventures didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, Sastasundar Ventures can boast revenue growth at a rate of 33% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 33%(per year) over the same period. Despite the strong run, top performers like Sastasundar Ventures have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Sastasundar Ventures stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Sastasundar Ventures shareholders have received a total shareholder return of 40% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 33% 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. 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. Even so, be aware that Sastasundar Ventures is showing 1 warning sign in our investment analysis , you should know about...

Of course Sastasundar Ventures may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Indian exchanges.

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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.