Did Business Growth Power JSW Holdings's (NSE:JSWHL) Share Price Gain of 289%?

In This Article:

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. One great example is JSW Holdings Limited (NSE:JSWHL) which saw its share price drive 289% higher over five years. It's also good to see the share price up 16% over the last quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

See our latest analysis for JSW Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over half a decade, JSW Holdings managed to grow its earnings per share at 25% a year. This EPS growth is slower than the share price growth of 31% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

NSEI:JSWHL Past and Future Earnings, May 17th 2019
NSEI:JSWHL Past and Future Earnings, May 17th 2019

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

A Different Perspective

We're pleased to report that JSW Holdings shareholders have received a total shareholder return of 46% over one year. That gain is better than the annual TSR over five years, which is 31%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Is JSW Holdings cheap compared to other companies? These 3 valuation measures might help you decide.

We will like JSW Holdings 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.