How Much Did Sanghi Industries'(NSE:SANGHIIND) Shareholders Earn From Share Price Movements Over The Last Three Years?

While not a mind-blowing move, it is good to see that the Sanghi Industries Limited (NSE:SANGHIIND) share price has gained 24% in the last three months. But that is meagre solace in the face of the shocking decline over three years. In that time the share price has melted like a snowball in the desert, down 70%. Arguably, the recent bounce is to be expected after such a bad drop. The thing to think about is whether the business has really turned around.

Check out our latest analysis for Sanghi Industries

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 the three years that the share price fell, Sanghi Industries' earnings per share (EPS) dropped by 28% each year. This change in EPS is reasonably close to the 33% average annual decrease in the share price. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. It seems like the share price is reflecting the declining earnings per share.

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

Dive deeper into Sanghi Industries' key metrics by checking this interactive graph of Sanghi Industries's earnings, revenue and cash flow.

A Different Perspective

Investors in Sanghi Industries had a tough year, with a total loss of 8.8%, against a market gain of about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 7% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It's always interesting to track share price performance over the longer term. But to understand Sanghi Industries better, we need to consider many other factors. Take risks, for example - Sanghi Industries has 3 warning signs (and 1 which is significant) we think you should know about.

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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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