Introducing Dynemic Products (NSE:DYNPRO), The Stock That Zoomed 112% In The Last Year

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Dynemic Products Limited (NSE:DYNPRO) share price has soared 112% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 45% in about a quarter. But this could be related to the strong market, which is up 23% in the last three months. Also impressive, the stock is up 66% over three years, making long term shareholders happy, too.

View our latest analysis for Dynemic Products

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

During the last year Dynemic Products grew its earnings per share (EPS) by 41%. The share price gain of 112% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Dynemic Products' earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Dynemic Products' TSR for the last year was 114%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that Dynemic Products rewarded shareholders with a total shareholder return of 114% over the last year. That's including the dividend. That gain actually surpasses the 20% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Dynemic Products on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Dynemic Products better, we need to consider many other factors. Take risks, for example - Dynemic Products has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are 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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