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Considering more than 90% of my investment in Hatsun has come in last two fiscal years, I think the title “Five years as shareholder of Hatsun” is a bit misleading. Leaving that aside, it has been a roller coaster ride since last one year. I am underperforming Nifty 50 Index and the recent bank collapses are pushing the overall market in downward trajectory. I see a lot of pain for the next year at least.
The wild ride with IDFC First Bank continues. July 2022 I was at -30% XIRR; seven months later it is at 10%, slightly above the Nifty 50 Index. There is nothing really interesting for me to write here so go ahead check the graphs below.
When D Mart announced its IPO, I decided to skip it because I rarely went to D Mart; opting to go to Big Bazaar instead which had lesser crowd (in the hindsight, this should have been warning sign) and cleaner aisles. That was the only research that I did for deciding whether I should apply for the IPO or not. When the IPO had a bumper listing I was left scratching my head. How can this overcrowded store get a bumper listing in front of the swanky store of Big Bazaar? But reading through a couple of articles I realised what D Mart was doing better than it competitors. For e.g., being profitable. Duh! So, three years back I decided to start investing in D Mart. Here are my key takeaways.
Three years ago I decided to start investing in Relaxo after seeing its meteoric rise and absolutely zero research. During the first two years I was comfortably beating the index. But 2022 was a tough year for Relaxo. It erased all my profits and is now in a loss.
Continuing my investment in Colgate—which has been underperforming since 2 years—has been a very painful experience. I still have my conviction on this stock after five years, albeit it is now on shaky ground. The only saving grace for me has been the dividend yield at cost which is at 1.3%. Compared to Nifty 50 index the XIRR has underperformed by a good 15%. Ouch!
Hoping that next year I write about ‘Six years as shareholder of Colgate-Palmolive (India) Limited’.
I got lucky with the HDFC Life Insurance IPO and saw Nifty 50 index beating returns for four years. But this year the stock stumbled and as of today HDFC Life Insurance has under performed the Nifty 50 index by good 9%. But I still have conviction in the company and have been increasing my allocation. In fact, 50% of my total investment in the company has been made this year alone. And I intend to continue my investment in future also.
The dividend yield at cost has been small with the latest one being 0.3%.
Last year when I wrote about ITC, I mentioned that there are die hard fans of ITC who are waiting for its resurrection some day. I think that day is here. Since Feb-2022, ITC has consistently moved up and as of today it is beating Nifty 50 Index after five years.
ITC continues to give great dividend returns with the latest dividend yield at cost for me at 2.8%.
Like Asian Paints, I did not continue investing in ITC after my first investment. That was a bad decision. 83% of my total investment in ITC has been made in last three years so I am still a long way to consider myself as a long term investor.
I have been incredibly lucky with my investment in Havells. With 25% XIRR I have beaten the Nifty 50 Index by a comfortable margin. But then it is because of this outperformance I have been a bit hesitant to invest more in this stock. I have not invested in this stock since last two years and the share price’s sideways movement has meant that the outperformance over Nifty 50 Index has shrunk over the last year.
The company pays dividends regularly and for me the latest dividend yield at cost has been at 0.7%.
The Russian invasion of Ukraine did affect the share price but it was still resilient compared to some other companies.
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.
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.
Five years back when I invested in VIP Industries I wasn’t really serious about it. I made small investment in it and forgot about it. But then like Divi’s Laboratories the share price exploded. And then it imploded when COVID-19 hit, because who is going to buy travel bags when you are in lockdown. Five years later with 30% XIRR, I now think I should have invested more. Below are my key takeaways.
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