Stock Analysis

Announcing: AstraZeneca Pharma India (NSE:ASTRAZEN) Stock Increased An Energizing 282% In The Last Five Years

NSEI:ASTRAZEN
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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. Long term AstraZeneca Pharma India Limited (NSE:ASTRAZEN) shareholders would be well aware of this, since the stock is up 282% in five years. In the last week the share price is up 7.9%.

Check out our latest analysis for AstraZeneca Pharma India

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over half a decade, AstraZeneca Pharma India managed to grow its earnings per share at 31% a year. This EPS growth is remarkably close to the 31% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. In fact, the share price seems to largely reflect the EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
NSEI:ASTRAZEN Earnings Per Share Growth January 1st 2021

It might be well worthwhile taking a look at our free report on AstraZeneca Pharma India's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that AstraZeneca Pharma India shareholders have received a total shareholder return of 77% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 31%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for AstraZeneca Pharma India you should know about.

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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This article by Simply Wall St is general in nature. 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.
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