The three-year decline in earnings for Oswal Greentech NSE:BINDALAGRO) isn't encouraging, but shareholders are still up 84% over that period

Oswal Greentech Limited (NSE:BINDALAGRO) shareholders have seen the share price descend 20% over the month. But over the last three years returns have been decent. In that time the stock gained 84%, besting the market return of 71%.

While the stock has fallen 12% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Oswal Greentech

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over the last three years, Oswal Greentech failed to grow earnings per share, which fell 1.8% (annualized).

Based on these numbers, we think that the decline in earnings per share may not be a good representation of how the business has changed over the years. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

The revenue drop of 2.6% is as underwhelming as some politicians. What's clear is that historic earnings and revenue aren't matching up with the share price action, very well. So you might have to dig deeper to get a grasp of the 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).

This free interactive report on Oswal Greentech's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Oswal Greentech shareholders have received a total shareholder return of 40% over the last year. There's no doubt those recent returns are much better than the TSR loss of 1.4% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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. For instance, we've identified 3 warning signs for Oswal Greentech (1 is a bit unpleasant) that you should be aware of.

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 IN 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.