Stock Analysis

The 13% return this week takes Orient Green Power's (NSE:GREENPOWER) shareholders three-year gains to 274%

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NSEI:GREENPOWER
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the Orient Green Power Company Limited (NSE:GREENPOWER) share price is 274% higher than it was three years ago. Most would be happy with that. In more good news, the share price has risen 14% in thirty days.

Since the stock has added ₹826m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Our analysis indicates that GREENPOWER is potentially undervalued!

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

During three years of share price growth, Orient Green Power moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
NSEI:GREENPOWER Earnings Per Share Growth December 2nd 2022

Dive deeper into Orient Green Power's key metrics by checking this interactive graph of Orient Green Power's earnings, revenue and cash flow.

A Different Perspective

Orient Green Power shareholders are down 12% for the year, but the market itself is up 9.1%. 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 0.9% 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. It's always interesting to track share price performance over the longer term. But to understand Orient Green Power better, we need to consider many other factors. For example, we've discovered 2 warning signs for Orient Green Power (1 is concerning!) that you should be aware of before investing here.

We will like Orient Green Power 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.

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

Find out whether Orient Green Power is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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