The 10% return this week takes Hindustan Media Ventures' (NSE:HMVL) shareholders one-year gains to 45%

It's always best to build a diverse portfolio of shares, since any stock business could lag the broader market. But the goal is to pick stocks that do better than average. One such company is Hindustan Media Ventures Limited (NSE:HMVL), which saw its share price increase 45% in the last year, slightly above the market return of around 44% (not including dividends). It is also impressive that the stock is up 31% over three years, adding to the sense that it is a real winner.

Since it's been a strong week for Hindustan Media Ventures shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Hindustan Media Ventures

We don't think that Hindustan Media Ventures' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Hindustan Media Ventures actually shrunk its revenue over the last year, with a reduction of 2.3%. The stock is up 45% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

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 Hindustan Media Ventures' financial health with this free report on its balance sheet.

A Different Perspective

Hindustan Media Ventures' TSR for the year was broadly in line with the market average, at 45%. That gain looks pretty satisfying, and it is even better than the five-year TSR of 4% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. 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. Case in point: We've spotted 3 warning signs for Hindustan Media Ventures you should be aware of, and 1 of them is potentially serious.

Of course Hindustan Media Ventures may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.