We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. One bright shining star stock has been Adani Transmissions Limited (NSE:ADANITRANS), which is 570% higher than three years ago. It's even up 6.1% in the last week.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Check out our latest analysis for Adani Transmissions
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Adani Transmissions was able to grow its EPS at 50% per year over three years, sending the share price higher. In comparison, the 89% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That's not necessarily surprising considering the three-year track record of earnings growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Adani Transmissions has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Adani Transmissions stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Pleasingly, Adani Transmissions's total shareholder return last year was 32%. But the three year TSR of 89% per year is even better. Is Adani Transmissions cheap compared to other companies? These 3 valuation measures might help you decide.
We will like Adani Transmissions better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.