If You Had Bought Jindal Stainless (Hisar) (NSE:JSLHISAR) Shares Three Years Ago You'd Have Made 238%

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the Jindal Stainless (Hisar) Limited (NSE:JSLHISAR) share price has soared 238% in the last three years. How nice for those who held the stock! On top of that, the share price is up 13% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 5.5% in 90 days).

View our latest analysis for Jindal Stainless (Hisar)

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During three years of share price growth, Jindal Stainless (Hisar) moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

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

We know that Jindal Stainless (Hisar) has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Jindal Stainless (Hisar) will grow revenue in the future.

A Different Perspective

The last twelve months weren't great for Jindal Stainless (Hisar) shares, which cost holders 44%, while the market was up about 3.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Investors are up over three years, booking 50% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. You could get a better understanding of Jindal Stainless (Hisar)'s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of companies that have proven they can grow earnings.

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.

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. Thank you for reading.