Another one, Giant and among the oldest company of Cement sector ACC. Find enclosed my working for investor who hold share (including bonus but not participating in rights) in ACC which got listed on BSE on 21-10-1937.
Over 1937-2019 (82 years), the minority shareholder XIRR (including dividend) were 9.2%. Net profit growth CAGR during 1937-2019 period was around 9.8%. So return of the company moved in line net profit growth over the years.
What was noteworthy that during the period, there were multiple change in ownership of the company. In fact, the company was formed by merger various small cement companies in 1930s which subsequently got controlled by British group moving the control to Tata Group after independence, in 2000 seen controlled moved to Gujarat Ambuja group and finally moved to Holicem group.
It is also pertinent to note that the company was one of the most favoured stock of Mr, Harshad Mehta during 1990-92 period. However, despite that, return in 1990-2000 period was mediocare 8.3%, despite net profit growth 10.5%.
Find enclosed summary of my working:
One interesing point which give insight in Cement sector operation in Indian since early 1930s.
The sector was reasonably consolidated as compared with industry before independence and hence has relatively bettter price influence despite being commodity.
Find enclosed my working excel file.
ACC Past Return.xlsx (87.2 KB)