If You Had Bought Kirloskar Ferrous Industries (NSE:KIRLFER) Shares A Year Ago You'd Have Earned 116% Returns

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 Kirloskar Ferrous Industries Limited (NSE:KIRLFER). Its share price is already up an impressive 116% in the last twelve months. Also pleasing for shareholders was the 51% gain in the last three months. Kirloskar Ferrous Industries hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Kirloskar Ferrous Industries

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Kirloskar Ferrous Industries was able to grow EPS by 40% in the last twelve months. The share price gain of 116% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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

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

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Kirloskar Ferrous Industries, it has a TSR of 123% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Kirloskar Ferrous Industries boasts a total shareholder return of 123% for the last year (that includes the dividends) . A substantial portion of that gain has come in the last three months, with the stock up 51% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Kirloskar Ferrous Industries better, we need to consider many other factors. For example, we've discovered 2 warning signs for Kirloskar Ferrous Industries that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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