Despite the downward trend in earnings at Oswal Greentech (NSE:OSWALGREEN) the stock hikes 13%, bringing five-year gains to 248%

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Oswal Greentech Limited (NSE:OSWALGREEN) which saw its share price drive 230% higher over five years. Better yet, the share price has risen 13% in the last week.

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

Check out our latest analysis for Oswal Greentech

Given that Oswal Greentech only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. 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.

In the last 5 years Oswal Greentech saw its revenue shrink by 7.7% per year. Given that scenario, we wouldn't have expected the share price to rise 27% per year, but that's what it did. It just goes to show tht the market is forward looking, and it's not always easy to predict the future based on past trends. Still, we are a bit cautious in this kind of situation.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at Oswal Greentech's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Oswal Greentech's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Oswal Greentech's TSR of 248% over the last 5 years is better than the share price return.

A Different Perspective

It's good to see that Oswal Greentech has rewarded shareholders with a total shareholder return of 58% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 28% per year), it would seem that the stock's performance has improved in recent times. 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 Oswal Greentech better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Oswal Greentech (at least 1 which is concerning) , and understanding them should be part of your investment process.

But note: Oswal Greentech 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.

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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.