GE Power India (NSE:GEPIL) delivers shareholders decent 25% CAGR over 3 years, surging 15% in the last week alone

Simply Wall St · 03/25/2025 00:15

The last three months have been tough on GE Power India Limited (NSE:GEPIL) shareholders, who have seen the share price decline a rather worrying 32%. But over three years, the returns would have left most investors smiling To wit, the share price did better than an index fund, climbing 94% during that period.

The past week has proven to be lucrative for GE Power India investors, so let's see if fundamentals drove the company's three-year performance.

Given that GE Power India didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years GE Power India saw its revenue shrink by 22% per year. The revenue growth might be lacking but the share price has gained 25% each year in that time. Unless the company is going to make profits soon, we would be pretty cautious about it.

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

earnings-and-revenue-growth
NSEI:GEPIL Earnings and Revenue Growth March 25th 2025

This free interactive report on GE Power India's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

GE Power India provided a TSR of 3.0% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 7% per year, over five years. So this might be a sign the business has turned its fortunes around. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for GE Power India that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Indian exchanges.