Such Is Life: How Intense Technologies (NSE:INTENTECH) Shareholders Saw Their Shares Drop 51%

Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Intense Technologies Limited (NSE:INTENTECH) have suffered share price declines over the last year. The share price is down a hefty 51% in that time. Because Intense Technologies hasn’t been listed for many years, the market is still learning about how the business performs. Even worse, it’s down 9.0% in about a month, which isn’t fun at all.

See our latest analysis for Intense Technologies

Intense Technologies isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Intense Technologies’s revenue didn’t grow at all in the last year. In fact, it fell 2.9%. That’s not what investors generally want to see. In the absence of profits, it’s not unreasonable that the share price fell 51%. Fingers crossed this is the low ebb for the stock. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.

Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.

NSEI:INTENTECH Income Statement, April 5th 2019
NSEI:INTENTECH Income Statement, April 5th 2019

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

A Different Perspective

Given that the market gained 1.8% in the last year, Intense Technologies shareholders might be miffed that they lost 51%. While the aim is to do better than that, it’s worth recalling that even great long-term investments sometimes underperform for a year or more. It’s great to see a nice little 1.5% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it’s the start of a new trend. You could get a better understanding of Intense Technologies’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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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.