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These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. To wit, the Surevin BPO Services Limited (NSE:SUREVIN) share price is 35% higher than it was a year ago, much better than the market return of around -1.6% (not including dividends) in the same period. So that should have shareholders smiling. Surevin BPO Services hasn’t been listed for long, so it’s still not clear if it is a long term winner.
Given that Surevin BPO Services only made minimal earnings in the last twelve months, we’ll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
Surevin BPO Services grew its revenue by 16% last year. That’s a fairly respectable growth rate. While the share price performed well, gaining 35% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
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.
This free interactive report on Surevin BPO Services’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Surevin BPO Services boasts a total shareholder return of 35% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 18% in that time. This suggests the company is continuing to win over new investors. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.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 firstname.lastname@example.org. 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.