Introducing Emami Paper Mills (NSE:EMAMIPAP), A Stock That Climbed 12% In The Last Year

We believe investing is smart because history shows that stock markets go higher in the long term. But if you choose that path, you're going to buy some stocks that fall short of the market. For example, the Emami Paper Mills Limited (NSE:EMAMIPAP), share price is up over the last year, but its gain of 12% trails the market return. Emami Paper Mills hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Emami Paper Mills

Given that Emami Paper Mills 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Emami Paper Mills saw its revenue shrink by 22%. The lacklustre gain of 12% over twelve months, is not a bad result given the falling revenue. We'd want to see progress to profitability before getting too interested in this stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're happy to report that Emami Paper Mills are up 12% over the year. The bad news is that's no better than the average market return, which was roughly 34%. Shareholders are doubtless excited that the stock price has been doing even better lately, with a gain of 22% in just ninety days. The very recent increase in the share price could be evidence that the narrative is changing for the better due to fundamental improvements. It's always interesting to track share price performance over the longer term. But to understand Emami Paper Mills better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Emami Paper Mills (including 2 which shouldn't be ignored) .

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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