Many #investors are loosing patience as #ITC is not generating returns since a few years.

Lets get the bigger picture

Can you imagine if one would have invested Rs. 1000 (just one thousand rupees) in ITC shares #IPO in 1970, what would be the returns today? @dmuthuk

A Short🧵
Your invested capital in the #ITC #IPO of

Rs. 1 thousand would have become ~ Rs. 2.43 Crores

Yes you have read it RIGHT !!!

That's not it, your would have got some heavy dividend too in all this 51 years .

Check out this real #wealth creation journey of ITC

(cont....)
Year 1970, for Rs. 1000 you would have got around 333 #ITC shares ( IPO price was Rs. 3 per share)

Here's the story of the BONUS and SPLIT

1978: 1:5 bonus
Your total shares = 333 + 333/5 = 399 shares

1980: again 1:5 bonus

Total shares = 399 + 79 = 478/-

(cont....)
1989: 1:1 bonus
Your total shares = 478 + 478 = 956 Shares

1991: 1:3 bonus
Your total shares = 956 + 318 (956/3) = 1274 shares

1994: 1:1 bonus
Your total shares = 1274 + 1274 = 2548

2005: 1:2 bonus
Your total shares = 2548 + 1274 (2548/2) = 3822

The saga continues........
The big #ITC share split happens in 2005
The face value changes from Rs 10 to Rs 1

So your total shares = 3822 *10 = 38220

2010: 1:1 bonus
Your total shares = 38220 +38220 = 76440

2016: 1:2 bonus
your total shares = 76440 + (76440/2) = 1,14,660/-

yes over 1 lakhs shares....
So, today you are having 1,14,600 shares of ITC after 51 years of your first buying in #IPO

Today the price of ITC share is 212.35

So, your total value is 114600 shares @ 212.35 per share is Rs. 2,43,35,310 (over Rs. 2.43 Cr)

TRUE power of compounding

#stocks #investments

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with ᴡᴇᴀʟᴛʜ ᴇɴʀɪᴄʜ : Advait Arora

ᴡᴇᴀʟᴛʜ ᴇɴʀɪᴄʜ : Advait Arora Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @WealthEnrich

25 Jul
#DIVISLAB #Wealth Creation journey

#IPO at Rs.140/share in 2003

If had got 100 shares (Rs.14000 #investment)
&
10:2 stock split in 2007
1:1 bonus in 2009
1:1 bonus in 2015

Total shares as of today 2000

Value today: 2000 Sh @ Rs. 4823 = 96.4 Lakhs

REAL Power of LT #Investing
@ipo_mantra : A Re-tweet would have been better than a Copy Paste I believe.
Anyways, am glad that the data & information is getting spread and #investors can benefit from the knowledge.
#IPO in good companies with loads of patience is the way to go.
#TCS is another GREAT example of long term #wealth creation. @ipo_mantra
Read 4 tweets
21 Jun
MAGIC of converting

1 Crore -----> 2200 Crores in 31 years.

A Short Thread on the #investing journey of tory of Ramdeo Agarwal - Cofounder of Motilal Oswal Financial Services

🧵 ( 1/4)
- Started with investment of 1 cr in shares in 1990 which increased to 30 crs in 92 market rally of Harshad Mehta time.

- 30 cr reduced to 10 cr in correction after 92 market rally

- 10 crs increased to 100 crs in Y2K market rally of 2000
- 100 crs reduced to 30 crs in correction after Y2K rally

- 30 crs increased to 550 crs in 2007 market rally

- 550 crs reduced to 250 crs in correction after 2007 rally

- 250 crs increased to 1850 crs by Feb 2020
Read 4 tweets
4 Jun
➡️Demergers unlock significant value for shareholders.

Recent examples:
#Jubilant Lifesciences
#CESC
#Arvind
#TataCommunicaitons
#Strides

➡️ Sharing 10 very interesting 'Potential Demergers' which can create some serious #wealth !!

~ ~ Short Thread ~ ~
1. #GHCL (Gujarat Heavy Chemicals Ltd)

→Demerging the Chemicals & Textile business is on the cards.

Possibility in 2 quarters.
2. Piramal Enterprises (#PEL)

→Three way Demerger possible :

~ RealEstate
~ Pharma(CDMO)
~ NBFC

Possibility in 2 to 3 quarters.
Read 12 tweets
1 May
👉🏿Why I believe this #multibagger #Lauruslabs can be a 4 digit stock from here on

➡️Short //Thread\\

In Q4 FY21:

✅Formulations revenue grew 60.9% YoY to Rs. 430 crore
✅CRAMS business grew 19.0% YoY to Rs. 176 crore.
✅EBITDA margins improved 1059 bps to 33.4%

(cont..)
~ #Laurus has planned a capex of Rs. 2400 Cr in next 36 months through internal accruals.
~As per mgm guidance it will have a sales of over 7000 cr in FY23.
~With healthy margins & RoCE of 35%+ we can assume Profits upwards of Rs. 1450 Cr which gives a FY23 EPS >Rs. 27

(cont)
Moderating its Growth from 40%+ in the past to a more reasonable 30% in FY24 will take its sales over Rs. 9000+ Cr.
With healthy FCF & 35%+ RoCE (1.3/1.4 times of asset turn x 28%+ EBIDTA) it will generate profits in upwards of Rs. 1950 cr. giving it an FY24 EPS of Rs.36+

(cont)
Read 4 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(