Despite currently being unprofitable, Kesoram Industries (NSE:KESORAMIND) has delivered a 339% return to shareholders over 1 year

Kesoram Industries Limited (NSE:KESORAMIND) shareholders will doubtless be very grateful to see the share price up 38% in the last quarter. While a drop like that is definitely a body blow, money isn't as important as health and happiness.

Since Kesoram Industries has shed ₹193m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

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Kesoram Industries wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Kesoram Industries grew its revenue by 5.0% over the last year. That's not a very high growth rate considering it doesn't make profits. Even so you could argue that it's surprising that the share price has tanked 97%. Clearly the market was expecting better, and this may blow out projections of profitability. If and only if this company is still likely to succeed, just a little slower, this could be a good opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Kesoram Industries stock, you should check out this FREE detailed report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered Kesoram Industries' share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Kesoram Industries shareholders, and that cash payout contributed to why its TSR of 339%, over the last 1 year, is better than the share price return.

A Different Perspective

We're pleased to report that Kesoram Industries shareholders have received a total shareholder return of 339% over one year. That gain is better than the annual TSR over five years, which is 99%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Kesoram Industries better, we need to consider many other factors. Even so, be aware that Kesoram Industries is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 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.