Stock Analysis

Investors push Dishman Carbogen Amcis (NSE:DCAL) 11% lower this week, company's increasing losses might be to blame

Published
NSEI:DCAL

Dishman Carbogen Amcis Limited (NSE:DCAL) shareholders might be concerned after seeing the share price drop 16% in the last month. But looking back over the last year, the returns have actually been rather pleasing! In that time we've seen the stock easily surpass the market return, with a gain of 67%.

In light of the stock dropping 11% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

Check out our latest analysis for Dishman Carbogen Amcis

Dishman Carbogen Amcis isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Dishman Carbogen Amcis saw its revenue grow by 9.2%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 67% in that time. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NSEI:DCAL Earnings and Revenue Growth May 9th 2024

If you are thinking of buying or selling Dishman Carbogen Amcis stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Dishman Carbogen Amcis has rewarded shareholders with a total shareholder return of 67% in the last twelve months. Notably the five-year annualised TSR loss of 1.1% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Dishman Carbogen Amcis better, we need to consider many other factors. For example, we've discovered 2 warning signs for Dishman Carbogen Amcis (1 is significant!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.