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Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Biofil Chemicals and Pharmaceuticals Limited (NSE:BIOFILCHEM) over the last year knows what a loser feels like. The share price is down a hefty 51% in that time. Because Biofil Chemicals and Pharmaceuticals hasn't been listed for many years, the market is still learning about how the business performs. The falls have accelerated recently, with the share price down 23% in the last three months.

View our latest analysis for Biofil Chemicals and Pharmaceuticals

Given that Biofil Chemicals and Pharmaceuticals only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last twelve months, Biofil Chemicals and Pharmaceuticals increased its revenue by 87%. That's well above most other pre-profit companies. Meanwhile, the share price slid 51%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

If you are thinking of buying or selling Biofil Chemicals and Pharmaceuticals stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We doubt Biofil Chemicals and Pharmaceuticals shareholders are happy with the loss of 51% over twelve months. That falls short of the market, which lost 1.7%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 23% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Is Biofil Chemicals and Pharmaceuticals cheap compared to other companies? These 3 valuation measures might help you decide.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.