Did You Miss Jash Engineering’s (NSE:JASH) Impressive 216% Share Price Gain?

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Jash Engineering Limited (NSE:JASH). Its share price is already up an impressive 216% in the last twelve months. It’s also good to see the share price up 47% over the last quarter. It is also impressive that the stock is up 132% over three years, adding to the sense that it is a real winner.

See our latest analysis for Jash Engineering

To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ 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 the last year, Jash Engineering actually saw its earnings per share drop 2.7%.

We don’t think that the decline in earnings per share is a good measure of the business over the last twelve months. Since the change in EPS doesn’t seem to correlate with the change in share price, it’s worth taking a look at other metrics.

We doubt the modest 0.6% dividend yield is doing much to support the share price. Unfortunately Jash Engineering’s fell 6.4% over twelve months. So the fundamental metrics don’t provide an obvious explanation for the share price gain.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We’re pleased to report that Jash Engineering rewarded shareholders with a total shareholder return of 218% over the last year. And yes, that does include the dividend. That’s better than the annualized TSR of 34% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It’s always interesting to track share price performance over the longer term. But to understand Jash Engineering better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We’ve identified 4 warning signs with Jash Engineering (at least 1 which is significant) , and understanding them should be part of your investment process.

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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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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