Those Who Purchased Balkrishna Paper Mills (NSE:BALKRISHNA) Shares Three Years Ago Have A 81% Loss To Show For It

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As an investor, mistakes are inevitable. But you want to avoid the really big losses like the plague. So take a moment to sympathize with the long term shareholders of Balkrishna Paper Mills Limited (NSE:BALKRISHNA), who have seen the share price tank a massive 81% over a three year period. That would be a disturbing experience. The more recent news is of little comfort, with the share price down 61% in a year. Even worse, it's down 41% in about a month, which isn't fun at all.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

View our latest analysis for Balkrishna Paper Mills

Given that Balkrishna Paper Mills 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. 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.

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

NSEI:BALKRISHNA Income Statement, October 20th 2019
NSEI:BALKRISHNA Income Statement, October 20th 2019

Take a more thorough look at Balkrishna Paper Mills's financial health with this free report on its balance sheet.

A Different Perspective

The last twelve months weren't great for Balkrishna Paper Mills shares, which cost holders 61%, while the market was up about 8.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 43% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: Balkrishna Paper Mills may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.

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