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The Adlabs Entertainment (NSE:ADLABS) Share Price Is Down 96% So Some Shareholders Are Very Salty

Simply Wall St

Adlabs Entertainment Limited (NSE:ADLABS) shareholders will doubtless be very grateful to see the share price up 38% in the last month. But the last three years have seen a terrible decline. The share price has sunk like a leaky ship, down 96% in that time. So it sure is nice to see a big of an improvement. Of course the real question is whether the business can sustain a turnaround.

While a drop like that is definitely a body blow, money isn't as important as health and happiness.

Check out our latest analysis for Adlabs Entertainment

Adlabs Entertainment isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

NSEI:ADLABS Income Statement, November 12th 2019

This free interactive report on Adlabs Entertainment's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Over the last year, Adlabs Entertainment shareholders took a loss of 78%. In contrast the market gained about 6.4%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 67% 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. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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.