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%.
Investment through the years
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.
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.
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.
I have invested four times across these four years. But in the past one year I did not make any new investment in it.
At 30% XIRR, my investment in VIP Industries has outperformed Nifty 50 Index which would have been at 18%. Heck, it even outperformed HDFC Bank and Pidilite Industries. But considering the small principal it doesn’t really move the needle for me.
VIP Industries is one the most volatile stocks in my portfolio. During COVID-19 market crash my returns went from positive 170% to negative 20%. Although, it has stabilised a bit in the past one year.
The company pays dividends regularly except during COVID-19, which is totally understandable.
Surprisingly, the Russian invasion of Ukraine had very little effect on the stock price of VIP Industries.
Five years into my investment in Pidilite Industries I can say that it has been my most consistent performers. Get this, even at its worst point my XIRR was 6% which is like fixed deposit returns. If I had sold my investment in Pidilite Industries at any point in time I would have still made more than fixed deposits (I am discounting STCG and LTCG for the wow factor as of now). Below are my key takeaways.
I have invested 19 times across these five years in Pidilite Industries.
As I said above, my returns have always beaten fixed deposit returns.
At the start of 2022 I was looking at nearly 40% XIRR. But the Russian invasion of Ukraine put in a dent on that.
Considering Nifty 50 index for comparison, my investment in Pidilite Industries has beaten it most of the time. As of today my XIRR stands at 23% compared to 18% for Nifty 50 Index. Woohoo!
The company pays dividends every year but my dividend yield at cost has been at a meagre 0.6%. But looking at the XIRR I should not be complaining.
With the general consensus of 10 years being long term, I am now half way through as a long term shareholder of Marico. Below are my key takeaways.
I have invested 12 times in Marico across these five years.
My returns have been a bit volatile and considering this is Marico it was a bit surprising for me. I have also underperformed Nifty 50 Index majority of the time.
The company has been paying dividends regularly twice a year. No complaints over there.
As of today my XIRR with Marico is same as Nifty 50 Index i.e. 10%. Hoping to see it at 15% after five more years. 🤞
Seven years ago I started my equity investment journey with HDFC Bank. I have continued to invest in the company through these years. Below are my key takeaways.
I have invested 21 times in HDFC Bank across these seven years.
My returns were been between 15-20% consistently, except during COVID-19 market crash. And I was beating the Nifty 50 Index till Oct-2021. But, since then I am underperforming the Nifty 50 Index by 3-4%. Considering HDFC Bank makes up a good chunk of my portfolio I am now worried a little bit. 😰
The company has ben paying dividends regularly. And the recent dividend of ₹15.50 per equity share—which was highest in 11 years—did give me some joy. 😁
My current XIRR is at 10% compared for Nifty 50 Index of 13%. Ouch!
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.
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.
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.
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.
