Hubtown (NSE:HUBTOWN) shareholder returns have been incredible, earning 776% in 3 years

We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. You won't get it right every time, but when you do, the returns can be truly splendid. For example, the Hubtown Limited (NSE:HUBTOWN) share price is up a whopping 776% in the last three years, a handsome return for long term holders. On top of that, the share price is up 17% in about a quarter. But this could be related to the strong market, which is up 8.5% in the last three months. Anyone who held for that rewarding ride would probably be keen to talk about it.

The past week has proven to be lucrative for Hubtown investors, so let's see if fundamentals drove the company's three-year performance.

View our latest analysis for Hubtown

While Hubtown 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. It would be hard to believe in a more profitable future without growing revenues.

Over the last three years Hubtown has grown its revenue at 13% annually. That's a very respectable growth rate. Arguably the very strong share price gain of 106% a year is very generous when compared to the revenue growth. After a price rise like that many will have the business, and plenty of them will be wondering whether the price moved too high, too fast.

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

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Hubtown's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Hubtown shareholders have received a total shareholder return of 274% over one year. That's better than the annualised return of 37% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Hubtown better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Hubtown you should be aware of, and 1 of them is a bit unpleasant.

There are plenty of other companies that have insiders buying up shares. You probably do 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 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.