Company No. 2, Aarti Industries.
Aarti Industries did IPO in Feb 1992 at price of Rs 36 premium on Paid up value of share of Rs 10 each. Subsequent to listing, there were mutiple bonus/splits and dividend. I could not get dividend declared by the company in FY1993-95 period. The shareholder return calculated are too that extent would be lower than actual figure. Further, the cashflow returned to shareholder in form of buyback is also not included in cashflow for equity shareholder.
Assuming an investor hold original allotment of 100 shares in 1992 till 2019, XIRR for that shareholder would be 26.7% p.a. during these holding period of 27.5. I have net profit figure begining FY1996 which was around RS 10.67 cr. In FY19, the consolidated net profit increased to Rs 492 Cr, giving CAGR of 18.1% during 23 years. Hence, there has been marginal growth in wealth created resulting from PE rerating over the period.
I am enlcosing my excel calculation for Aarti Industries.
Discl: Aarti Industries is among my Top 3 holding and I have been holding the company since August 2014. Reader should take note that my view may be biased due to my investment.
Aarti Industries Equity return since listing in 1992.xlsx (11.9 KB)