Unfortunately, investing is risky – companies can and do fail. But when you choose a business that is truly thriving, you can Craft more than 100%. For example, the Limited Deep Industries (NSE: DEEPINDS) The stock price soared 190% in a single year. Shareholders also appreciated the 32% gain over the past three months. Note that companies generally grow over the long term, so last year’s returns may not reflect a long-term trend.

Based on a strong 7-day performance, let’s check what role company fundamentals have played in driving long-term shareholder returns.

Check out our latest analysis for Deep Industries

Although the efficient markets hypothesis continues to be taught by some, it has been proven that markets are dynamic systems that are too reactive and that investors are not always rational. An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings per share (EPS) with the movement of the share price.

Deep Industries was able to increase EPS by 12% over the last twelve months. This EPS growth is significantly lower than the 190% increase in share price. This indicates that the market is now more bullish on the stock.

You can see below how the EPS has evolved over time (find out the exact values ​​by clicking on the image).

NSEI:DEEPINDS Earnings Per Share Growth June 8, 2022

It might be interesting to take a look at our free Deep Industries earnings, revenue and cash flow report.

What about dividends?

It is important to consider the total shareholder return, as well as the stock price return, for a given stock. The TSR incorporates the value of any spin-offs or discounted capital increases, as well as any dividends, based on the assumption that dividends are reinvested. Arguably, TSR gives a more complete picture of the return generated by a stock. In the case of Deep Industries, it has a TSR of 193% for the past year. This exceeds the performance of its share price that we mentioned earlier. This is largely the result of its dividend payments!

A different perspective

It’s nice to see that Deep Industries shareholders have gained 193% over the past year, including dividends. The most recent returns have not been as impressive as the longer-term returns, coming in at just 32%. That said, we doubt shareholders are concerned. It seems that the market is simply waiting for more information, because if the company delivers on its promises, so will the stock price (eventually). It is always interesting to follow the evolution of the share price over the long term. But to better understand Deep Industries, we need to consider many other factors. For example, we have identified 4 warning signs for Deep Industries of which you should be aware.

If you like buying stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on IN exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.