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The nature of investing is that you win some, and you lose some. And there's no doubt that Deepak Fertilisers And Petrochemicals Corporation Limited (NSE:DEEPAKFERT) stock has had a really bad year. The share price has slid 61% in that time. However, the longer term returns haven't been so bad, with the stock down 12% in the last three years.
View our latest analysis for Deepak Fertilisers And Petrochemicals
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Unfortunately Deepak Fertilisers And Petrochemicals reported an EPS drop of 49% for the last year. We note that the 61% share price drop is very close to the EPS drop. So it seems that the market sentiment has not changed much, despite the weak results. Rather, the share price has approximately tracked EPS growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into Deepak Fertilisers And Petrochemicals's key metrics by checking this interactive graph of Deepak Fertilisers And Petrochemicals's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Deepak Fertilisers And Petrochemicals's total shareholder return (TSR) and its share price change, which we've covered above. 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 Deepak Fertilisers And Petrochemicals shareholders, and that cash payout explains why its total shareholder loss of 60%, over the last year, isn't as bad as the share price return.
A Different Perspective
While the broader market gained around 1.8% in the last year, Deepak Fertilisers And Petrochemicals shareholders lost 60% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 5.1% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Keeping this in mind, a solid next step might be to take a look at Deepak Fertilisers And Petrochemicals's dividend track record. This free interactive graph is a great place to start.