Mangalam Cement (NSE:MANGLMCEM) shareholders are still up 33% over 3 years despite pulling back 12% in the past week

By
Simply Wall St
Published
May 10, 2022
NSEI:MANGLMCEM
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It might be of some concern to shareholders to see the Mangalam Cement Limited (NSE:MANGLMCEM) share price down 17% in the last month. But at least the stock is up over the last three years. In that time, it is up 31%, which isn't bad, but not amazing either.

Since the long term performance has been good but there's been a recent pullback of 12%, let's check if the fundamentals match the share price.

Check out our latest analysis for Mangalam Cement

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

During three years of share price growth, Mangalam Cement moved from a loss to profitability. So we would expect a higher share price over the period.

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

earnings-per-share-growth
NSEI:MANGLMCEM Earnings Per Share Growth May 10th 2022

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

Mangalam Cement shareholders gained a total return of 11% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 0.5% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Mangalam Cement better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Mangalam Cement (of which 1 is concerning!) you should know about.

But note: Mangalam Cement may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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