Find enclosed one more company past performance analysis. Britannia was originally listed in Kolkata Stock exchnage in early 1900. However, subsequently, it issued shares to Indian Public due to FERA regulations at price of Rs 15 (Face value 10+ Premium of Rs 5) on 13 October 1977. I have calculated equity return since 1977.
Over last 42 years, the company generated CAGR return of 26.7% p.a. as compared net profit CAGR of 17.2% during FY1978-2020. The retun does not include bonus debentures issued by the company. 100 shares with investment amount of Rs 1500 invested in 1977, would have increased to 4,410 shares (split and bonus adjuted) with price of Rs 2690, providing current value of Rs 1.18 Cr. Over the period, the company Dividend yield remain in range of 1-4% and PE which was initially low, now trading at very high levels. Return on net worth over last 42 years has remained at 26.6%, excellent in my view.
Find enlcosed key highlights and excel working file for everyone reference.
| Period wise performance | PE | Div Yield | ROE | XIRR during period | Net Profit CAGR |
|---|---|---|---|---|---|
| 1978-1990 | 13.33 | 4.1% | 18.8% | 29.3% | 12.2% |
| 1990-2000 | 43.56 | 1.0% | 24.5% | 32.3% | 21.4% |
| 2000-2010 | 24.16 | 1.3% | 29.0% | 10.9% | 8.6% |
| 2010-2020 | 48.63 | 0.9% | 35.5% | 32.4% | 29.0% |
| 1978-2020 | 30.48 | 2.0% | 26.6% | 26.7% | 17.3% |
Britannia Past Return.xlsx (110.0 KB)