Introducing Aditya Birla Fashion and Retail (NSE:ABFRL), A Stock That Climbed 69% In The Last Five Years

Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the Aditya Birla Fashion and Retail share price has climbed 69% in five years, easily topping the market return of 27% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 8.1% in the last year.

See our latest analysis for Aditya Birla Fashion and Retail

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.

During the last half decade, Aditya Birla Fashion and Retail became profitable. That's generally thought to be a genuine positive, so we would expect to see an increasing share price.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

NSEI:ABFRL Past and Future Earnings, November 10th 2019
NSEI:ABFRL Past and Future Earnings, November 10th 2019

It is of course excellent to see how Aditya Birla Fashion and Retail has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Aditya Birla Fashion and Retail's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Aditya Birla Fashion and Retail has rewarded shareholders with a total shareholder return of 8.1% in the last twelve months. Having said that, the five-year TSR of 11% a year, is even better. Before spending more time on Aditya Birla Fashion and Retail it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.