It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in Bhagyanagar India Limited (NSE:BHAGYNAGAR) have tasted that bitter downside in the last year, as the share price dropped 36%. That falls noticeably short of the market return of around -1.3%. At least the damage isn't so bad if you look at the last three years, since the stock is down 12% in that time. It's down 1.9% in the last seven days.

Check out our latest analysis for Bhagyanagar India

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the unfortunate twelve months during which the Bhagyanagar India share price fell, it actually saw its earnings per share (EPS) improve by 146%. Of course, the situation might betray previous over-optimism about growth. It's surprising to see the share price fall so much, despite the improved EPS. But we might find some different metrics explain the share price movements better.

Bhagyanagar India's revenue is actually up 50% over the last year. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Bhagyanagar India's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Bhagyanagar India's TSR of was a loss of 36% for the year. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

We regret to report that Bhagyanagar India shareholders are down 36% for the year. Unfortunately, that's worse than the broader market decline of 1.3%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 1.4% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. If you would like to research Bhagyanagar India in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

But note: Bhagyanagar India 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.