Stock Analysis

Introducing Arshiya (NSE:ARSHIYA), The Stock That Zoomed 277% In The Last Year

NSEI:ARSHIYA
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Arshiya Limited (NSE:ARSHIYA). Its share price is already up an impressive 277% in the last twelve months. On top of that, the share price is up 151% in about a quarter. 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 45% in the last three years.

View our latest analysis for Arshiya

Arshiya isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Arshiya actually shrunk its revenue over the last year, with a reduction of 19%. So we would not have expected the share price to rise 277%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
NSEI:ARSHIYA Earnings and Revenue Growth March 8th 2021

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

A Different Perspective

It's nice to see that Arshiya shareholders have received a total shareholder return of 277% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 6% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Arshiya is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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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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