Jindal Stainless (Hisar) (NSE:JSLHISAR) Shareholders Booked A 72% Gain In The Last Year

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Jindal Stainless (Hisar) Limited (NSE:JSLHISAR) share price is up 72% in the last year, clearly besting the market return of around 8.3% (not including dividends). So that should have shareholders smiling. Unfortunately the longer term returns are not so good, with the stock falling 43% in the last three years.

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. 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.

Over the last twelve months, Jindal Stainless (Hisar) actually shrank its EPS by 35%.

This means it's unlikely the market is judging the company based on earnings growth. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

Jindal Stainless (Hisar)'s revenue actually dropped 21% over last year. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

It's nice to see that Jindal Stainless (Hisar) shareholders have gained 72% (in total) over the last year. That certainly beats the loss of about 13% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. It's always interesting to track share price performance over the longer term. But to understand Jindal Stainless (Hisar) better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Jindal Stainless (Hisar) (including 1 which is doesn't sit too well with us) .

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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