Bhansali Engineering Polymers (NSE:BEPL) Has Rewarded Shareholders With An Exceptional 706% Total Return On Their Investment

We think all investors should try to buy and hold high quality multi-year winners. And we've seen some truly amazing gains over the years. To wit, the Bhansali Engineering Polymers Limited (NSE:BEPL) share price has soared 685% over five years. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 62% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.

It really delights us to see such great share price performance for investors.

Check out our latest analysis for Bhansali Engineering Polymers

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, Bhansali Engineering Polymers achieved compound earnings per share (EPS) growth of 60% per year. So the EPS growth rate is rather close to the annualized share price gain of 51% per year. That suggests that the market sentiment around the company hasn't changed much over that time. Indeed, it would appear the share price is reacting to the EPS.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

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. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Bhansali Engineering Polymers' TSR for the last 5 years was 706%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that Bhansali Engineering Polymers shareholders have received a total shareholder return of 198% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 52%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 Bhansali Engineering Polymers is showing 1 warning sign in our investment analysis , you should know about...

We will like Bhansali Engineering Polymers better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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