Tuesday, January 28, 2025 India’s tourism shows a sharp weekly dip but achieves an impressive 103% growth over five years, reflecting its remarkable long-term resilience and strength. The India Tourism Development Corporation Limited (NSE: ITDC) experienced a challenging week, with its share price tumbling by 12%. However, this short-term dip pales in comparison to the impressive long-term performance of the company.
Over the past five years, the stock has surged by 103%. Although a recent decline can be disheartening, it is vital to take a broader perspective and evaluate the overall trajectory of the business. Whether the current share price reflects too much optimism remains to be seen.
Despite the week’s setback, it’s worth analyzing the company’s recent business trends to determine whether the long-term gains align with its performance fundamentals. While markets can sometimes efficiently price stocks, they don’t always perfectly reflect a company’s actual performance. A straightforward way to gauge how market sentiment toward a business has evolved is by comparing earnings per share (EPS) growth with share price movement.
Over the last five years, India Tourism Development achieved an annual EPS growth rate of 20%. This growth rate surpasses the annualized share price increase of 15% over the same period, suggesting that market enthusiasm for the stock has moderated. Nevertheless, the company’s price-to-earnings (P/E) ratio of 66.
63 shows that investors re.