14 Oct With 3 bonuses And 1 split, This chemical stock has given tremendous returns in 20 years
Aarti Industries Limited (AIL) is a leading Indian manufacturer of specialty chemicals with a global presence. The company is engaged in manufacturing of agrochemicals, polymers, additives, surfactants, pigments and dyes. The company is major part of Aarti group. The company manufactures organic and inorganic chemicals. AIL has its plants in Vapi, Jhagadia, Dahej, Kutch and Tarapur in India.
Aarti Industries Limited was listed in stock market on Feb 8, 1995. The company has performed very well in last 30 years. The market cap of Aarti Industries Limited is 19366 Crore (as on 14.10.2024). The share price of Aarti Industries Limited was Rs. 534.00 (on 14.10.2024, 12:23 PM).
The Invested money in Aarti Industries Limited shares has grown rapidly over 20 years. Let’s have talk with an example.
Let’s suppose Person name is Sumit. Sumit had invested in the stock in Year 2004; Stock price was 7/-. He had purchased 1000 shares of Aarti Industries. He invested 7000/- in year 2004.
The company gave 3 Bonuses and one split
Bonus
29/12/2004 2:1 (1000+2000=3000)
13/8/2019 1:1 (3000+3000= 6000)
18/5/2024 1:1 (6000+6000= 12000)
Split
31/10/2005 10 5 (12000*2 = 24000)
Sumit should have 24000 shares of Aarti Industries today. The present price of one share is Rs. 534.00
So 534*24000= 1,28,64000
Hey, Dividend amount is excluded yet. Dividend amount was near 3.70 Lakh (not perfect/exact calculation near about).
12864000+370000=13234000
It means: 12864000/7000 = 1890X
Per year investment grown: 1890/20 = 94X
In simple words, your 7000 investment was turning into 637000 each year OOOOhhhh What a profit.
This is power of compounding in the stock market. Stay invested. Long term investment is the best way to make good corpus in the stock market. Always pick fundamentally strong stocks. If any company spends 10 year in market gracefully; it means that company has faced many ups-downs well. This is guess of strong establishment but not a parameter. Parameters may include ROCE, ROE, Quarterly results, holding pattern, Profit & loss, Debt ratio etc.
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Disclaimer: You may consider buying these stocks; but please advising your financial advisor before thinking to buy. The article is based on our personal views and information from trusted sources. We are not registered with SEBI.
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