Stock Analysis

The 5.7% return this week takes Network18 Media & Investments' (NSE:NETWORK18) shareholders five-year gains to 196%

NSEI:NETWORK18
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For example, the Network18 Media & Investments Limited (NSE:NETWORK18) share price has soared 196% in the last half decade. Most would be very happy with that. It's even up 5.7% in the last week.

The past week has proven to be lucrative for Network18 Media & Investments investors, so let's see if fundamentals drove the company's five-year performance.

View our latest analysis for Network18 Media & Investments

Given that Network18 Media & Investments didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

For the last half decade, Network18 Media & Investments can boast revenue growth at a rate of 12% per year. That's a pretty good long term growth rate. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 24% per year over five years. Given that the business has made good progress on the top line, it would be worth taking a look at the growth trend. When a growth trend accelerates, be it in revenue or earnings, it can indicate an inflection point for the business, which is can often be an opportunity for investors.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NSEI:NETWORK18 Earnings and Revenue Growth June 12th 2024

Take a more thorough look at Network18 Media & Investments' financial health with this free report on its balance sheet.

A Different Perspective

Network18 Media & Investments shareholders are up 24% for the year. Unfortunately this falls short of the market return. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 24% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. 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 be aware of the 1 warning sign we've spotted with Network18 Media & Investments .

But note: Network18 Media & Investments may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Indian exchanges.

Valuation is complex, but we're here to simplify it.

Discover if Network18 Media & Investments might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.