Did You Manage To Avoid Hindusthan National Glass & Industries's (NSE:HINDNATGLS) Painful 69% Share Price Drop?

By
Simply Wall St
Published
January 27, 2020
NSEI:HINDNATGLS

While it may not be enough for some shareholders, we think it is good to see the Hindusthan National Glass & Industries Limited (NSE:HINDNATGLS) share price up 12% in a single quarter. But that is little comfort to those holding over the last half decade, sitting on a big loss. Indeed, the share price is down 69% in the period. So we're not so sure if the recent bounce should be celebrated. Of course, this could be the start of a turnaround.

See our latest analysis for Hindusthan National Glass & Industries

Given that Hindusthan National Glass & Industries 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. When a company doesn't make profits, we'd generally expect to see good 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.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NSEI:HINDNATGLS Income Statement, January 28th 2020
NSEI:HINDNATGLS Income Statement, January 28th 2020

If you are thinking of buying or selling Hindusthan National Glass & Industries stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Hindusthan National Glass & Industries shareholders are down 58% for the year, but the market itself is up 12%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 21% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality business. 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. For instance, we've identified 3 warning signs for Hindusthan National Glass & Industries that you should be aware of.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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