Satia Industries (NSE:SATIA) shareholders YoY returns are lagging the company's 105% one-year earnings growth

Satia Industries Limited (NSE:SATIA) shareholders have seen the share price descend 19% over the month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. In that time we've seen the stock easily surpass the market return, with a gain of 33%.

While the stock has fallen 12% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Satia Industries

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).

During the last year Satia Industries grew its earnings per share (EPS) by 105%. This EPS growth is significantly higher than the 33% increase in the share price. So it seems like the market has cooled on Satia Industries, despite the growth. Interesting.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

It's nice to see that Satia Industries shareholders have gained 33% over the last year, including dividends. That's better than the more recent three month gain of 4.5%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Satia Industries , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.