Shalimar Paints'(NSE:SHALPAINTS) Share Price Is Down 55% Over The Past Three Years.

While not a mind-blowing move, it is good to see that the Shalimar Paints Limited (NSE:SHALPAINTS) share price has gained 28% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 55% in the last three years, significantly under-performing the market.

Check out our latest analysis for Shalimar Paints

Shalimar Paints isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Shalimar Paints' financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Shalimar Paints' total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Shalimar Paints' TSR, which was a 41% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

Shalimar Paints provided a TSR of 6.1% over the last twelve months. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 2% per year, over five years. So this might be a sign the business has turned its fortunes around. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Shalimar Paints (including 1 which is a bit unpleasant) .

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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