Introducing Goldstone Technologies (NSE:GOLDTECH), A Stock That Climbed 64% In The Last Three Years

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Goldstone Technologies Limited (NSE:GOLDTECH) shareholders have seen the share price descend 19% over the month. But don't let that distract from the very nice return generated over three years. In fact, the company's share price bested the return of its market index in that time, posting a gain of 64%.

See our latest analysis for Goldstone Technologies

Given that Goldstone Technologies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Goldstone Technologies actually saw its revenue drop by 6.3% per year over three years. Despite the lack of revenue growth, the stock has returned 18%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).

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

A Different Perspective

While the broader market gained around 0.2% in the last year, Goldstone Technologies shareholders lost 37%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 3.9% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. You could get a better understanding of Goldstone Technologies's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.