Three years as shareholder of Polycab

Three years ago Polycab came out with its IPO. I applied for it and got lucky.

The company listed at 21% premium giving me an instant unrealised profit. The share price continued its upwards trajectory after that. The second time I got the courage to invest was after the correction due to COVID-19 market crash. After that also the share price has kept its upward momentum and I have been hesitant to invest more.

The share price is now 4 times its listing price because of which I am now in a dilemma—what if I invest and the share price falls or what if I don’t invest and the share price still goes up. 🤔

Below are my key takeaways.

• In these last three years I have invested twice in the company—one of that was during the IPO.
• In these three years, I am yet to see negative returns on Polycab. Even during the COVID-19 market crash the XIRR did not go below 10%.
• The XIRR currently stands at 70%, yes that’s a positive 70%. Which is insane and… not sustainable. Consider this, at 70% CAGR your 10,000 will become 20 lakhs in 10 years. Nah, thats not going to happen.
• My investment in Polycab—which is really small—has beaten Nifty 50 Index fund by a huge margin. With Polycab I have XIRR of 70%, while with Nifty 50 Index I would have 20%.
• The company has paid out dividends thrice during three years, so no complaint there. And the dividend yield at cost for me is 1.4%, which is good.

Returns

Profit

XIRR