When L&T Infotech came out with its IPO I wasn’t very excited, so I let it pass. And two years later when the share price doubled I ended up slapping my forehead. I swallowed my pride, acknowledged my horrendous stock picking skills and decided to invest in it. Below are my key takeaways.
- I have invested 5 times across these three years, with last three investments coming in last six months.
- The gap between my first and second investment was 2.5 years. Looking back, it was a lost opportunity for me that I didn’t invest more during its rise. The second time I invested in L&T Infotech, its share price had tripled. Wow!
- The share price had been in upwards trajectory till Jan-2022. Since then the share price has been falling, impacting my XIRR. Below were the three key events since Jan-2022 that weighed down on my XIRR.
- Russian invasion of Ukraine
- Announcement of L&T Infotech merger with Mindtree
- Surprise rate hike of 40 basis points by RBI
- The announcement of L&T Infotech merger with Mindtree was particularly devastating to my XIRR. That news pulled it from 45% to 17%. And it did not help that I had bought additional shares just before the announcement with price hovering around 6000. 😭
- Here’s a little fact. Nov-2021 my XIRR is 85%. Woohoo! As of today my XIRR is 5%. Ouch!
- Till very, very recently I was beating Nifty 50 Index by a huge margin. Not any more!
- The company has been paying dividends regularly. No complaints over there.
Returns
Profit
XIRR
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