Six years ago when I started investing in Samvardhana Motherson International Ltd, it was called Motherson Sumi Systems Limited. Over last six years the company split its wiring business into another entity called Motherson Sumi Wiring India Limited and renamed itself to Samvardhana Motherson International Ltd.
When Motherson Sumi Wiring Ltd got demerged, the historical share price of Samvardhana Motherson International Ltd got adjusted to remove Motherson Sumi Wiring Ltd’s valuation (not sure if I am using the right terminology here, I am no financial expert). With this adjustment I cannot reliably calculate how my investment has performed historically. If I try to plot my returns, then for the first five years I am in deep red because I bought at a price which included Motherson Sumi Wiring India Limited; but the historical price does not include it (not sure if I made any sense here, again… I am no financial expert).
So rather than the journey I will focus on the data as of today. But before that, lets have a look at the key events during the last six years.
| Date | Event |
| Jul 2017 from Motherson Sumi Systems Ltd | Bonus 1:2 |
| Oct 2018 from Motherson Sumi Systems Ltd | Bonus 1:2 |
| Feb 2022 | Motherson Sumi Wiring Ltd demerges with 1:1 ratio i.e. one equity share of Motherson Sumi Wiring Ltd for every one equity share of Motherson Sumi Systems Limited |
| Sep 2022 from Motherson Sumi Wiring Ltd | Bonus 2:5 |
| Sep 2022 | Motherson Sumi Systems Limited renames itself to Samvardhana Motherson International Ltd |
| Oct 2022 from Samvardhana Motherson International Ltd | Bonus 1:2 |
Now back to returns as of today. For my calculation I am using my holdings of both Samvardhana Motherson International Ltd and Motherson Sumi Wiring Ltd.
Investment through the years
Returns
After six years, I am at a loss with my investment. Considering the bonus shares issued I thought my dividend yield at cost would be impressive. Alas, I was wrong. Or my understanding of bonus shares was wrong. I will have to Google ‘splits vs bonus’.
| Fiscal year | Dividend yield at cost |
| 2016-17 | 0.00% |
| 2017-18 | 0.35% |
| 2018-19 | 0.52% |
| 2019-20 | 1.65% |
| 2020-21 | 0.00% |
| 2021-22 | 0.83% |
| 2022-23 | 0.83% |
| 2023-24 * | 0.00% |
Profit Percent
My investment’s profit (or should I say loss): -2.5%
Had I invested in Nifty 50 Index fund I would have a profit of 64.5%. 🤦
XIRR
My investment’s XIRR: -0.62%
Had I invested in Nifty 50 Index fund my XIRR would be 12.32%. 🤦