Pudumjee Paper Products (NSE: PDMJEPAPER) YoY Profit Growth Below 207% YoY Shareholder Returns


Unfortunately, investing is risky – businesses can and do go bankrupt. But when you choose a business that is truly successful, you can Make more than 100%. For example, the Pudumjee Paper Products Limited (NSE: PDMJEPAPER) The stock price has climbed 205% in the past year. Most would be very happy, especially in just a year! Better yet, the stock price rose 16% last week. Looking back, the share price is 110% higher than it was three years ago.

Given that the stock added 593 million yen to its market cap in the last week alone, let’s see if the underlying performance has generated any long-term returns.

Check out our latest review for Pudumjee paper products

To paraphrase Benjamin Graham: In the short term the market is a voting machine, but in the long term it is a weighing machine. By comparing earnings per share (EPS) and changes in the share price over time, we can get a sense of how investors’ attitudes towards a company have changed over time.

Pudumjee Paper Products has been able to increase its EPS by 123% in the past twelve months. The 205% share price gain certainly outpaced EPS growth. This indicates that the market is now more bullish on the stock.

The company’s earnings per share (over time) is shown in the image below (click to see exact numbers).

NSEI: PDMJEPAPER Growth in earnings per share October 5, 2021

Before buying or selling a stock, we always recommend a careful review of historical growth trends, available here.

What about dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. While the share price return reflects only the change in the share price, the TSR includes the value of dividends (assuming they have been reinvested) and the benefit of any capital increase or spin- off updated. So, for companies that pay a generous dividend, the TSR is often much higher than the return on the share price. In the case of Pudumjee Paper Products, it has a TSR of 207% for the past year. This exceeds the return on its share price that we mentioned earlier. The dividends paid by the company thus boosted the total shareholder return.

A different perspective

It is nice to see that the shareholders of Pudumjee Paper Products have received a total shareholder return of 207% over the past year. And that includes the dividend. As the 1-year TSR is better than the 5-year TSR (the latter standing at 20% per year), it seems that the performance of the stock has improved in recent times. At the best of times, this can portend real business momentum, meaning that now may be a good time to dig deep. It is always interesting to follow the evolution of stock prices over the long term. But to better understand Pudumjee paper products, there are many other factors that we need to consider. Nevertheless, be aware that Pudumjee Paper Products shows 3 warning signs in our investment analysis , you must know…

If you like to buy 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 market-weighted average returns of stocks that currently trade on the IN exchanges.

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

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