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

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Related reading

• Three years as shareholder of Nerolac