naveegator.in

Category: Stock Market

  • Four years as shareholder of Polycab

    Four years as shareholder of Polycab

    I have been incredibly lucky with my investment in Polycab till now. Till now. The keyword here is ’till now’. I don’t know what the future holds but if past is any indication—Divi’s Laboratories and L&T Infotech—I will probably make a big investment at peak, and the stock starts its downward trajectory erasing all my fantabulous gains.

    Polycab has been a star performer since last 4 years. Not only my returns have beaten Nifty 50 Index, my profits alone also have beaten Nifty 50 Index. The dividend yield at cost also has been above average, in my opinion. But while the returns are great but invested amount is small so it does not make enough impact in my portfolio.

    Having a stock like Polycab is both boon and a bane. Boon because profits. Duh! Bane because I never have the courage to sell and book profits. What if it goes up even more? Every time I repeat to myself—I am a long term investor.

    Let’s see what happens after five years. 🤞

    Investment through the years

    Returns

    The dividend yield at cost mentioned in the chart above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.

    Fiscal yearDividend yield at cost
    2019-201.86%
    2020-210.00%
    2021-221.45%
    2022-231.27%
    2023-24 *0.00%
    * Data as of 1-May-2023

    To calculate the dividend yield at cost in the above table I use the below formula.

    (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit Percent

    XIRR

    Related reading:

  • Six years as shareholder of Samvardhana Motherson International Ltd [and Motherson Sumi Wiring India Ltd]

    Six years ago when I started investing in Samvardhana Motherson International Ltd, it was called Motherson Sumi Systems Limited. Over last six years the company split its wiring business into another entity called Motherson Sumi Wiring India Limited and renamed itself to Samvardhana Motherson International Ltd.

    When Motherson Sumi Wiring Ltd got demerged, the historical share price of Samvardhana Motherson International Ltd got adjusted to remove Motherson Sumi Wiring Ltd’s valuation (not sure if I am using the right terminology here, I am no financial expert). With this adjustment I cannot reliably calculate how my investment has performed historically. If I try to plot my returns, then for the first five years I am in deep red because I bought at a price which included Motherson Sumi Wiring India Limited; but the historical price does not include it (not sure if I made any sense here, again… I am no financial expert).

    So rather than the journey I will focus on the data as of today. But before that, lets have a look at the key events during the last six years.

    DateEvent
    Jul 2017
    from Motherson Sumi Systems Ltd    		Bonus 1:2
    Oct 2018
    from Motherson Sumi Systems Ltd    		Bonus 1:2
    Feb 2022Motherson Sumi Wiring Ltd demerges with 1:1 ratio i.e. one equity share of Motherson Sumi Wiring Ltd for every one equity share of Motherson Sumi Systems Limited
    Sep 2022
    from Motherson Sumi Wiring Ltd    		Bonus 2:5
    Sep 2022Motherson Sumi Systems Limited renames itself to Samvardhana Motherson International Ltd
    Oct 2022
    from Samvardhana Motherson International Ltd    		Bonus 1:2

    Now back to returns as of today. For my calculation I am using my holdings of both Samvardhana Motherson International Ltd and Motherson Sumi Wiring Ltd.

    Investment through the years

    Returns

    After six years, I am at a loss with my investment. Considering the bonus shares issued I thought my dividend yield at cost would be impressive. Alas, I was wrong. Or my understanding of bonus shares was wrong. I will have to Google ‘splits vs bonus’.

    Fiscal yearDividend yield at cost
    2016-170.00%
    2017-180.35%
    2018-190.52%
    2019-201.65%
    2020-210.00%
    2021-220.83%
    2022-230.83%
    2023-24 *0.00%
    * Data as of 25-Apr-2023

    Profit Percent

    My investment’s profit (or should I say loss): -2.5%

    Had I invested in Nifty 50 Index fund I would have a profit of 64.5%. 🤦

    XIRR

    My investment’s XIRR: -0.62%

    Had I invested in Nifty 50 Index fund my XIRR would be 12.32%. 🤦

    Related reading:

  • Five years as shareholder of Kansai Nerolac

    Five years as shareholder of Kansai Nerolac

    I had initially invested in Nerolac to diversify my investment in paints—I had earlier invested in Asian Paints. But Nerolac’s continued underperformance has made me put it in my ‘ignore’ watchlist. I have small money invested it but it is in perennial loss so let me ignore it, not look at it and it might simply go away.

    • I have invested 7 times across these five years.
    • The company pays dividends regularly and my dividend yield at cost for a year has always been hovering around 0.5%. Except for last fiscal year, 2022-23, where it was just 0.17%.
    • My investment in Nerolac has never been able to beat the Nifty 50 Index. Except for that one week in Jan-2021. Since last two years, the underperformance has simply widened.

    Investment through the years

    Returns

    The dividend yield at cost mentioned in the graph above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.

    Fiscal yearDividend yield at cost
    2018-190.52%
    2019-200.52%
    2020-210.49%
    2021-220.53%
    2022-230.17%

    To calculate the dividend yield at cost in the above table I use the below formula.

    (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit Percent

    XIRR

    Related reading:

  • Five years as shareholder of Supreme Industries

    Five years as shareholder of Supreme Industries

    Five years seems like a good amount of investment duration in a stock. But considering more than three-quarters of that investment came in last two fiscal years, my investment in Supreme Industries is still very young. Here are my key takeaways.

    • I have invested 11 times in Supreme Industries across these fives years.
    • The company regularly pays dividends for the fiscal year 2022-23 by dividend yield at cost was 1.13%.
    • With the current XIRR of 19% I am conformably beating Nifty 50 index whose return would have been a measly 7%. Yay!
    • The Russian invasion of Ukraine, sent the stock in a downward trajectory and I saw it go in negative for the first time since the Covid-19 market crash. But I was able to accumulate some more of it during this time.

    Investment through the years

    Returns

    The dividend yield at cost mentioned in the graph above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.

    Fiscal yearDividend yield at cost
    2018-190.75%
    2019-202.14%
    2020-210.42%
    2021-220.65%
    2022-231.13%

    To calculate the dividend yield at cost in the above table I use the below formula.

    (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit

    XIRR

    Related reading:

  • Three years as shareholder of Tata Consultancy Services

    Three years as shareholder of Tata Consultancy Services

    After realising that I was missing IT sector in my portfolio, I started with LTIMindtree and then added Tata Consultancy Services (TCS) portfolio. There was really no research involved in selecting TCS. Not even eeny, meeny, miny, moe. Below are my key takeaways.

    • I have invested 13 times in TCS in last three years, and more than 50% of that has come in last fiscal year i.e. 2022-23. So my investment is very young and I will have to wait a couple of years to see how it really performs.
    • Since Apr-22, my investment in TCS has been underperforming the Nifty 50 Index. Considering the recessionary fears and layoffs in the IT sector I expect the underperformance to continue for sometime.
    • TCS has paid dividends 14 times in these three years. Apparently, TCS pays dividends four times in a fiscal year. At least this has been the case since last three years. And the last dividend included a special dividend of ₹67. Yay!

    Investment through the years

    Returns

    While I have mentioned the dividend yield at cost at each date when I received the dividends, another way to look at it is to calculate dividend yield at cost for the fiscal year against total amount invested till that fiscal year.

    Fiscal yearDividend yield at cost
    2019-200.61%
    2020-210.93%
    2021-221.07%
    2022-232.91%

    To calculate the dividend yield at cost in the above table I use the below formula.

    (Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100

    Profit Percent

    XIRR

  • Five years as shareholder of Hatsun

    Five years as shareholder of Hatsun

    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.

    Investment through the years

    Returns

    Profit

    XIRR

    Related reading:

  • Six years as shareholder of IDFC First Bank

    Six years as shareholder of IDFC First Bank

    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.

    Investment through the years

    Return

    Profit percent

    XIRR

    Related reading:

  • Three years as shareholder of D Mart

    Three years as shareholder of D Mart

    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.

    1. I have invested 12 times across these three years.
    2. I unfortunately invested in D Mart at its peak of 5000+ levels. This severely impacted my XIRR. And the recent correction in the share price has meant that I have underperformed Nifty 50 Index by a huge margin.
    3. The company has not paid any dividends. This was something I found out after investing in it.

    Return

    Profit Percent

    XIRR

  • Three years as shareholder of Relaxo Footwear

    Three years as shareholder of Relaxo Footwear

    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.

    Returns

    Profit Percent

    XIRR

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

    Five years as shareholder of Colgate-Palmolive (India) Limited

    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’.

    Investment through the years

    Returns

    Profit Percent

    XIRR

    Related reading: