Six years as shareholder of Asian Paints

Six years into my investment in Asian Paints with 26% XIRR, I should say I am really happy. But considering that 85% of my investment came in last 3 years, I should probably change the title of this post to “3 years as shareholder of Asian Paints”. And the 26% XIRR starts looking a bit unrealistic—at least in the long term.

The company has been a solid performer and regularly pays dividends. For me, my latest dividend yield at cost was 0.8%. My investment has been able to beat the Nifty 50 Index comfortably since last 3 years. Yay!

Like my investment in Pidilite, I am yet to see a negative XIRR since last five years on my investment. Even during the COVID-19 market crash my XIRR went from 17% to 8%. I would say that is pretty resilient compared to VIP Industries.

The news of Grasim entering in paints business and their subsequent announcement of doubling their investment in it, did put a short term dent in my returns. Although it quickly recovered, but I will have to see how it affects in the long term.

Investment through the years

A big missed opportunity was not investing in Asian Paints during 2017 and 2018. Had I invested a significant amount during that time, my XIRR returns and the actual corpus amount would have been substantial. This is something for which I will always kick myself.