Did Business Growth Power IFGL Refractories' (NSE:IFGLEXPOR) Share Price Gain of 118%?

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the IFGL Refractories Limited (NSE:IFGLEXPOR) share price had more than doubled in just one year - up 118%. It's also good to see the share price up 34% over the last quarter. Zooming out, the stock is actually down 1.2% in the last three years.

Check out our latest analysis for IFGL Refractories

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

IFGL Refractories was able to grow EPS by 17% in the last twelve months. This EPS growth is significantly lower than the 118% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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

It might be well worthwhile taking a look at our free report on IFGL Refractories' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, IFGL Refractories' total shareholder return last year was 118%. And yes, that does include the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 0.9%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand IFGL Refractories better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for IFGL Refractories you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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