Tata Motors (NSE: TATAMOTORS) shareholder returns have been splendid, gaining 196% in 3 years
It might sound bad, but the worst that can happen when you buy a stock (without leverage) is that its stock price goes to zero. But when you choose a business that is truly successful, you can Make more than 100%. For example the Tata Motors Limited The share price (NSE: TATAMOTORS) is 196% higher than it was three years ago. How nice of those who held the stock! On top of that, the stock price rose 61% in about a quarter.
After a solid gain last week, it’s worth seeing if long-term returns have been boosted by improving fundamentals.
Check out our latest analysis for Tata Motors
Since Tata Motors has not made a profit in the past twelve months, we will focus on revenue growth to get a quick view of its business development. When a business is not making a profit, we generally expect good revenue growth. Indeed, the rapid growth in income can be easily extrapolated to the expected profits, often of considerable size.
Tata Motors has indeed seen its turnover fall by 6.6% per year over three years. Thus, the increase in the share price of 44% per year is quite surprising. It’s a good reminder that expectations about the future, not history, always have an impact on stock prices.
Below you can see how earnings and income have evolved over time (see the exact values ââby clicking on the image).
Tata Motors is well known to investors, and many smart analysts have attempted to predict future profit levels. Considering we have a good number of analyst forecasts, it might be worth checking this out. free graph showing consensus estimates.
A different perspective
It is good to see that Tata Motors has rewarded its shareholders with a total shareholder return of 161% over the past twelve months. As the 1-year TSR is better than the 5-year TSR (the latter standing at 0.7% per annum), it seems that the performance of the stock has improved in recent times. 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. However, be aware that Tata Motors shows 2 warning signs in our investment analysis , you must know…
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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.
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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 any stock 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 any of the stocks mentioned.