Somany Ceramics (NSE: SOMANYCERA) shareholder returns have been fantastic, gaining 309% in 1 year

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Active investing isn’t easy, but for those who do, the goal is to find and profit from the best companies to buy. When you find (and maintain) a big winner, you can dramatically improve your finances. For example, Somany Ceramic Limited (NSE: SOMANYCERA) generated a nice return of 307% in just one year. It’s also good to see the stock price rise 23% in the last quarter. But that could be related to the strength of the market, up 12% in the past three months. It’s also impressive that the stock is up 101% over three years, which adds to the feeling that he’s a real winner.

The past week has turned out to be lucrative for Somany Ceramics investors. So let’s see if the fundamentals have motivated the performance of the company over one year.

Discover our latest analysis for Somany Ceramics

To quote Buffett, “Ships will sail around the world but the Flat Earth Society will thrive. There will continue to be wide spreads between price and value in the market … ‘An imperfect but reasonable way to assess how sentiment around a company has changed is to compare earnings per share (EPS) with the course of action.

Over the past year, Somany Ceramics has increased its earnings per share from a loss to a profit.

When a company is right on the brink of profitability, it may be useful to consider other metrics to more accurately assess growth (and therefore understand stock price movements).

We doubt that the modest dividend yield of 0.3% is doing much to support the share price. We believe the 31% revenue growth may be of interest to some investors. We are seeing some companies cut their profits in order to accelerate revenue growth.

The graph below illustrates the evolution of earnings and income over time (reveal the exact values ​​by clicking on the image).

NSEI: SOMANYCERA Profits and Revenue Growth September 28, 2021

Somany Ceramics is well known to investors and many smart analysts have attempted to predict future profit levels. So we recommend you to check this free report showing consensus forecasts

What about dividends?

In addition to measuring stock price performance, investors should also consider the total shareholder return (TSR). TSR is a yield calculation that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of any discounted capital increase and spinoff. So, for companies that pay a generous dividend, the TSR is often much higher than the return on the share price. As it turns out, Somany Ceramics’ TSR for the past year was 309%, which exceeds the share price return mentioned earlier. The dividends paid by the company thus boosted the total shareholder return.

A different perspective

It is good to see that Somany Ceramics has rewarded its shareholders with a total shareholder return of 309% over the past twelve months. Of course, this includes the dividend. This gain is better than the annual TSR over five years which is 5%. Therefore, it seems that sentiment around the company has been positive lately. At the best of times, this can portend real business momentum, meaning that now may be a good time to dig deep. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we discovered 1 warning sign for Somany Ceramics which you should know before investing here.

If you are like me then you not want to miss it free list of growing companies that insiders buy.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade 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 material. Simply Wall St has no position in any of the stocks mentioned.

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