If You Had Bought Parsvnath Developers (NSE:PARSVNATH) Shares A Year Ago You'd Have Earned 389% Returns

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you buy and hold the right company, the returns can make a huge difference to both you and your family. In the case of Parsvnath Developers Limited (NSE:PARSVNATH), the share price is up an incredible 389% in the last year alone. On top of that, the share price is up 110% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Unfortunately the longer term returns are not so good, with the stock falling 48% in the last three years.

See our latest analysis for Parsvnath Developers

Parsvnath Developers 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 expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Parsvnath Developers saw its revenue grow by 28%. We respect that sort of growth, no doubt. But the market is even more excited about it, with the price apparently bound for the moon, up 389% in one of earth's orbits. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on Parsvnath Developers.

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 Parsvnath Developers' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Parsvnath Developers has rewarded shareholders with a total shareholder return of 389% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Parsvnath Developers (of which 1 is significant!) you should know about.

But note: Parsvnath Developers 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. 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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