Sarda Energy & Minerals (NSE: SARDAEN) year-over-year returns were strong, but earnings growth was even better
Unless you borrow money to invest, the potential losses are limited. On the flip side, if you find a high quality business to buy (at the right price), you can more than double your money! For example, the Sarda Energy & Minerals Limited (NSE: SARDAEN) The share price has climbed 244% in a single year. Another good news is that the share price has climbed 28% in thirty days. We note that Sarda Energy & Minerals recently published its financial results; Fortunately, you can check out the latest revenue and profit figures in our company report. Equally impressive, the stock is up 193% over three years, which also pleases long-term shareholders.
After a solid gain last week, it’s worth seeing if long-term returns have been boosted by improving fundamentals.
Check out our latest review for Sarda Energy & Minerals
It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. By comparing earnings per share (EPS) and changes in stock prices over time, we can get an idea of how investor attitudes towards a company have changed over time.
Over the past year, Sarda Energy & Minerals has seen its earnings per share (EPS) increase sharply. We don’t think the exact number is a good indicator of the sustainable growth rate, but we think this type of increase is impressive. We therefore expect the share price to rise. We’re big supporters of letting inflection points like this guide our research as stock pickers.
You can see below how the EPS has evolved over time (find out the exact values by clicking on the image).
This free Sarda Energy & Minerals’ interactive earnings, revenue and cash flow report is a great place to start if you want to delve deeper into the stock.
What about dividends?
In addition to measuring stock price performance, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any discounted demerger or capital increase, as well as any dividend, based on the assumption that dividends are reinvested. It’s fair to say that the TSR gives a more complete picture of dividend paying stocks. As it turns out, Sarda Energy & Minerals’ TSR for the past year was 248%, which exceeds the share price return mentioned above. And there’s no price guessing that dividend payments are a big part of the reason for the discrepancy!
A different perspective
It is good to see that Sarda Energy & Minerals has rewarded its shareholders with a total shareholder return of 248% over the past twelve months. And that includes the dividend. This is better than the 30% annualized return over half a decade, which implies that the company has been doing better recently. Since the stock price momentum remains strong, it might be worth taking a closer look at the stock lest you miss an opportunity. It is always interesting to follow the evolution of stock prices over the long term. But to understand Sarda Energy & Minerals better, there are many other factors that we need to take into account. Take risks, for example – Sarda Energy & Minerals has 3 warning signs we think you should be aware.
But beware : Sarda Energy & Minerals may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently trading on the IN exchanges.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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