Raj Television Network (NSE:RAJTV) delivers shareholders splendid 40% CAGR over 3 years, surging 21% in the last week alone

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. To wit, the Raj Television Network Limited (NSE:RAJTV) share price has flown 172% in the last three years. That sort of return is as solid as granite. Also pleasing for shareholders was the 45% gain in the last three months.

Since it's been a strong week for Raj Television Network shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Raj Television Network

While Raj Television Network made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 3 years Raj Television Network saw its revenue grow at 15% per year. That's pretty nice growth. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 40% per year over three years. The business has made good progress on the top line, but the market is extrapolating the growth. It would be worth thinking about when profits will flow, since that milestone will attract more attention.

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

Take a more thorough look at Raj Television Network's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Raj Television Network has rewarded shareholders with a total shareholder return of 117% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 17% 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 Raj Television Network better, we need to consider many other factors. Even so, be aware that Raj Television Network is showing 2 warning signs in our investment analysis , you should know about...

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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.