Yahoo Finance Tirupati Graphite (LON:TGR) adds UK£13m to market cap in the past 7 days, though investors from a year ago are still down 44%
Tirupati Graphite plc (LON:TGR) has rebounded strongly over the last week, with the share price soaring 37%. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 44% in the last year, well below the market return.
On a more encouraging note the company has added UK£13m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.
Check out our latest analysis for Tirupati Graphite
We don't think Tirupati Graphite's revenue of UK£2,250,445 is enough to establish significant demand. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. For example, investors may be hoping that Tirupati Graphite finds some valuable resources, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.
Tirupati Graphite had liabilities exceeding cash by UK£3.3m when it last reported in September 2022, according to our data. That puts it in the highest risk category, according to our analysis. But with the share price diving 44% in the last year , it's probably fair to say that some shareholders no longer believe the company will succeed. You can see in the image below, how Tirupati Graphite's cash levels have changed over time (click to see the values).
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. What if insiders are ditching the stock hand over fist? I'd like that just about as much as I like to drink milk and fruit juice mixed together. It costs nothing but a moment of your time to see if we are picking up on any insider selling.
A Different Perspective
Tirupati Graphite shareholders are down 44% for the year, even worse than the market loss of 0.05%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 2.1% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Tirupati Graphite better, we need to consider many other factors. Even so, be aware that Tirupati Graphite is showing 6 warning signs in our investment analysis , and 2 of those don't sit too well with us...
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 British exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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