@sujay85
Find enclosed my working for calculation of XIRR for Ratnamani Metal. Key summary:
| Period-wise Performance | XIRR during period | Average PE | Average Div Yield | Average ROE | Net Profit CAGR |
|---|---|---|---|---|---|
| 1993-2000 | 23.0% | 5.41 | 6.3% | 12.7% | 10.8% |
| 2000-2010 | 47.1% | 9.02 | 3.8% | 21.6% | 44.1% |
| 2010-2019 | 28.7% | 16.35 | 1.4% | 17.7% | 13.4% |
| 1993-2019 | 33.4% | 10.91 | 3.6% | 18.5% | 23.6% |
Over 26 years, the company reported 33% XIRR, with average P/E ratio of ~11 times and Average dividend yield of 3.6%. ROE over 26 years are around 18.5% p.a., while net profit growth has grown at CAGR of 23.6%.
When we compare, these over various decades, we find consistent performance on ROE which has remained consistently over 15%, since 2000 with relatively consitent growth of the company whose performance is dependent on economy and oil sector. As a result, market has rewarded shareholder with consistent improvement in PE despite working Steel pipe sector.
I am enclosing my working for everyone reference.
Ratnamani Past return 1993-2019.xlsx (28.0 KB)