The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Madhya Bharat Agro Products Limited (NSE:MBAPL) share price is up 53% in the last year, clearly besting than the market return of around -12% (not including dividends). So that should have shareholders smiling. Madhya Bharat Agro Products hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for Madhya Bharat Agro Products
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.
Madhya Bharat Agro Products was able to grow EPS by 137% in the last twelve months. This EPS growth is significantly higher than the 53% increase in the share price. So it seems like the market has cooled on Madhya Bharat Agro Products, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 11.39.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. It might be well worthwhile taking a look at our free report on Madhya Bharat Agro Products's earnings, revenue and cash flow.
A Different Perspective
Madhya Bharat Agro Products shareholders should be happy with the total gain of 54% over the last twelve months, including dividends. And the share price momentum remains respectable, with a gain of 25% in the last three months. This suggests the company is continuing to win over new investors. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.
Madhya Bharat Agro Products is not the only stock that insiders are buying. 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.
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.