If You Had Bought Kellton Tech Solutions (NSE:KELLTONTEC) Shares A Year Ago You'd Have Earned174% Returns

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Kellton Tech Solutions Limited (NSE:KELLTONTEC) share price had more than doubled in just one year - up 174%. Shareholders are also celebrating an even better 235% rise, over the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Unfortunately the longer term returns are not so good, with the stock falling 1.0% in the last three years.

View our latest analysis for Kellton Tech Solutions

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over the last twelve months, Kellton Tech Solutions actually shrank its EPS by 9.9%.

So we don't think that investors are paying too much attention to EPS. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

Kellton Tech Solutions' revenue actually dropped 3.6% over last year. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Kellton Tech Solutions' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, Kellton Tech Solutions' total shareholder return last year was 174%. This recent result is much better than the 0.3% drop suffered by shareholders each year (on average) over the last three. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. It's always interesting to track share price performance over the longer term. But to understand Kellton Tech Solutions better, we need to consider many other factors. Take risks, for example - Kellton Tech Solutions has 2 warning signs we think you should be aware of.

We will like Kellton Tech Solutions 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.

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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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