Earnings grew faster than the notable 53% return delivered to Vakrangee (NSE:VAKRANGEE) shareholders over the last year

The Vakrangee Limited (NSE:VAKRANGEE) share price has had a bad week, falling 11%. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 53% in that time.

Since the long term performance has been good but there's been a recent pullback of 11%, let's check if the fundamentals match the share price.

View our latest analysis for Vakrangee

While Vakrangee 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. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over the last twelve months, Vakrangee's revenue grew by 11%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 53%. That's not a standout result, but it is solid - much like the level of revenue growth. 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 graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

It's good to see that Vakrangee has rewarded shareholders with a total shareholder return of 53% in the last twelve months. And that does include the dividend. That certainly beats the loss of about 3% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Vakrangee (at least 3 which are significant) , and understanding them should be part of your investment process.

But note: Vakrangee 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.