Did You Miss Jubilant Industries' (NSE:JUBLINDS) Impressive 154% Share Price Gain?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. Take, for example Jubilant Industries Limited (NSE:JUBLINDS). Its share price is already up an impressive 154% in the last twelve months. It's also up 88% in about a month. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. Zooming out, the stock is actually down 0.8% in the last three years.

Check out our latest analysis for Jubilant Industries

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Jubilant Industries was able to grow EPS by 3.0% in the last twelve months. This EPS growth is significantly lower than the 154% 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 image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

It's good to see that Jubilant Industries has rewarded shareholders with a total shareholder return of 154% in the last twelve months. That gain is better than the annual TSR over five years, which is 0.9%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Jubilant Industries (of which 1 is a bit concerning!) you should know about.

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