Balaji Telefilms (NSE:BALAJITELE) surges 13% this week, taking one-year gains to 213%

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. Take, for example Balaji Telefilms Limited (NSE:BALAJITELE). Its share price is already up an impressive 213% in the last twelve months. Also pleasing for shareholders was the 96% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Looking back further, the stock price is 128% higher than it was three years ago.

The past week has proven to be lucrative for Balaji Telefilms investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for Balaji Telefilms

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Balaji Telefilms went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 12% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Balaji Telefilms' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Balaji Telefilms shareholders have received a total shareholder return of 213% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 11% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Balaji Telefilms better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Balaji Telefilms (including 1 which is a bit unpleasant) .

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 Indian 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.