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Category: Equity

  • Five years as shareholder of Divi’s Laboratories

    My investment in Divi’s Laboratories has been my biggest missed opportunity. Five years back—still new to equity investing—I was looking for Pharma stocks to invest. During that research—not sure if I should call it research, but let’s go with it—I came across Divi’s Laboratories. I made a small investment in it and forgot about it. In the next 3.5 years the stock went up 5 times! And I did not make a single new investment during that time! Every time I thought “it can’t go up any further than that”. Boy was I wrong. So, so wrong!

    Below are my key takeaways.

    • My biggest takeaway has been that if a share price doubles in short span, then I need to start reading about the company before arriving at decision that “Isse upar nahi jaayega”.
    • While I did complete 5 years as shareholder of Divi’s Laboratories, there was a gap of 3.5 years between my first and second investment. And during that time the stock went up 5 times. As my first investment was minuscule it didn’t help me in the recent market crash.
    • I have invested 7 times across these 5 years, with last 6 investments coming in last 2 years.
    • Surprisingly, COVID-19 market crash had little effect on my XIRR.
    • But the Russian invasion of Ukraine and its subsequent effects, on the other hand, decimated my XIRR. It currently stands at 6%. Ouch!
    • The company has been paying dividends regularly. No complaints over there.

    Returns

    Profit Percent

    As you can see, during its remarkable rise I just sat there thinking, isse upar nahi jaayega.

    XIRR

  • Three years as shareholder of L&T Infotech

    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.
      1. Russian invasion of Ukraine
      2. Announcement of L&T Infotech merger with Mindtree
      3. 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

  • 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

  • Five years as shareholder of Motherson Sumi [and Wiring]

    With the general consensus of 10 years being long term, I am now half way through as a long term shareholder of Motherson Sumi. Below are my key takeaways.

    • I have invested 6 times across these five years.
    • It has been a roller coaster ride with this stock because when I first invested in the company, the share price was already at its peak. And then the share price started its downfall.
    • During the COVID-19 market crash my XIRR went from an already negative 15% to negative 45%. Ouch!
    • The company very recently demerged its wiring business in a separate entity as Montherson Sumi Wiring. With the demerger I got 1 share of Motherson Sumi Wiring for every share of Motherson Sumi Systems. I am including that also in my calculations. Hopefully this demerger should unlock value like it did in the case of my investment in Greenply.
    • After four years of negative XIRR, last year I finally saw it go positive. Yay! But the Russian invasion of Ukraine pulled it down. Ouch! And the listing of demerged Motherson Sumi Wiring pulled it up again. Yay!
    • My investment in Motherson Sumi has not been able to beat the index fund. Hoping to beat it in the next five years. 🤞

    Returns

    Profit

    XIRR

    Related reading

  • Four years as shareholder of Kansai Nerolac

    Happy with my investment in Asian Paints, four years ago I decided to invest in another paint company Kansai Nerolac. My returns have been, well, not good. Below are my key takeaways.

    • I have invested 6 times across these four years.
    • The company pays dividends regularly, but my dividend yield at cost has never touched 1%.
    • During the COVID-19 market crash my XIRR went from 0% to negative 15%.
    • The best XIRR came during Jan 2021 when it touched 45%. But that was an anomaly and it quickly fell to a realistic level of 25%.
    • The company has been barely able to beat Nifty 50 Index fund and since last one year Nifty 50 Index has beaten it by a huge margin. As of today while the returns in Nifty 50 Index fund would have been 25%, Kansai Nerolac’s returns has been at –5%.
    • The Russian invasion of Ukraine was more severe than COVID-19 market crash with my XIRR going from 15% to –10%.

    Return

    Profit

    XIRR

    Related reading

  • Four years as shareholder of Supreme Industries

    I have been investing in Supreme Industries for four years. And after four years I can say that I happy with my investment. Here are my key takeaways.

    • I have invested 8 times across these four years.
    • The company has been regularly paying dividends and the best dividend yield at cost was 1.4% that I have received in Jun 2021.
    • During the COVID-19 market crash my XIRR went from positive 15% to negative 15%.
    • The best XIRR came in Oct 2021 at 35%.
    • Over the last two years the company has been able to beat Nifty 50 Index.
    • The Russian invasion of Ukraine dented my returns but I used it to accumulate more shares—something that I did not do during the COVID-19 market crash.

    Return

    Profit

    XIRR

    Related reading:

  • Four years as shareholder of Hatsun Agro

    Four years ago after my thorough research—which I can’t remember now—I decided to invest in Hatsun Agro. I knew very little of the company when I started investing in it, apart from that it was in the dairy industry. Overtime I learned that it has been in existence for 50 years and 20 mutual funds had invested in it.

    I think the first time I bought Hatsun Agro, it was at its peak. Because I did not see any profits for a good two and a half years. It was only after the announcement of company giving bonus on Dec 2020 the share price started to move upward. I decided I will accumulate more and made the same mistake of buying the share at its peak the second and third time. The share price has been been in a correction mode for last six months and eroded a good chunk of my profits. For a fleeting moment—Oct 2021—I was kicking index funds behind before crashing and burning.

    Hatsun Agro has been relatively consistent with its dividends—no complaints there—and my dividend yield at cost has improved to 1.1% after bonus issue.

    Returns

    Profit

    XIRR

  • Five years as shareholder of IDFC First Bank

    Last year I blogged about completing four years as shareholder of IDFC First Bank. I continue to stay invested in this company and have poured in more of my hard earned money. And as with previous analysis, IDFC First Bank continues to underperform for me after half a decade. But hey, I am in this for long term. I just hope I don’t say the same thing after a decade.

    Last year I had hoped that IDFC First Bank will turn into HDFC Bank. This year—with the number of spam calls from IDFC First Bank rivalling that of Bajaj Finance—I am hoping that it becomes Bajaj Finance!

    Below are my key observations.

    • My investment has not been able to beat Nifty 50 Index. Here I used Nippon India Index Nifty Fund to compare. And with the recent market correction my worth of investment is less than the amount invested.
    • Last time I received dividend was in July 2018. After that the company hasn’t paid any dividend. Dividend yield at cost for me at that time was 1.6%.
    • XIRR is at -5%.

    Return

    Profit

    XIRR

  • Four years as shareholder of Colgate-Palmolive (India) Limited

    Four years ago while brushing my teeth with Colgate, I decided to invest in it. I am using Colgate for more than three decades now, so the company should survive at least few more years. And here we are four years later, Colgate is still there and so is the money that I invested in it. Are the returns great? No. Are the returns good? Still No. Are the return average? Sadly, yes. But hey, it could be worse considering the research that I did here.

    Returns and Profit

    Over these four years I invested 8 times in Colgate. The returns across these four years have largely been positive except during the COVID-19 pandemic market crash. But since last couple of months the share price has tumbled erasing a good chunk of my (unrealised) profits.

    On the other hand, 1%+ dividend yield at cost is much better than the dividends that is given by other companies.

    Profit Percent

    XIRR

    XIRR across these four years has been around 15% and I was happy with that. It was during the last 3 months that the share price price has tumbled putting my XIRR at 5%.

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Four years as shareholder of HDFC Life Insurance

    Four years ago I subscribed to the HDFC Life Insurance IPO. And I got lucky! I got the minimum quantity of 50 shares with HDFC Life Insurance opening up with a nice 17% gain on first day. After that I bought the share 3 more times. This is how it has performed over these four years.

    Return

    Over these four years the worth of my investment has never fallen below my invested amount. The dividend yield at cost for me has been around 0.5% with the company declaring dividends thrice over four years. They skipped the COVID-19 year like other companies.

    Profit

    The V-shape that you see between the period Jan-2020 to Jul-2020 is the COVID-19 market crash and its subsequent recovery. I do regret not being able to buy more during the crash. But the recovery was so quick that I had little to no funds to invest.

    XIRR

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.