Stock Analysis

DiGiSPICE Technologies (NSE:DIGISPICE) delivers shareholders incredible 75% CAGR over 3 years, surging 26% in the last week alone

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NSEI:DIGISPICE
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Investing can be hard but the potential fo an individual stock to pay off big time inspires us. But when you hold the right stock for the right time period, the rewards can be truly huge. One bright shining star stock has been DiGiSPICE Technologies Limited (NSE:DIGISPICE), which is 435% higher than three years ago. And in the last week the share price has popped 26%.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

Check out our latest analysis for DiGiSPICE Technologies

DiGiSPICE Technologies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

DiGiSPICE Technologies' revenue trended up 35% each year over three years. That's much better than most loss-making companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 75% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like DiGiSPICE Technologies can sometimes sustain strong growth for many years. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NSEI:DIGISPICE Earnings and Revenue Growth December 9th 2022

Take a more thorough look at DiGiSPICE Technologies' financial health with this free report on its balance sheet.

A Different Perspective

Investors in DiGiSPICE Technologies had a tough year, with a total loss of 25%, against a market gain of about 7.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. Take risks, for example - DiGiSPICE Technologies has 1 warning sign we think you should be aware of.

We will like DiGiSPICE Technologies better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether DiGiSPICE Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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