Seven years as shareholder of Asian Paints but with 90% of that investment coming in last four years, my analysis should be taken with a pinch of salt.
Investment through the years
The foolish decision of not investing anything during FY 2017-18 and FY 2018-19 still haunts me.
Returns
The dividends continue to be, meh!
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 year | Dividend yield at cost |
| 2016-17 | 0.19% |
| 2017-18 | 0.70% |
| 2018-19 | 0.81% |
| 2019-20 | 0.96% |
| 2020-21 | 0.24% |
| 2021-22 | 0.73% |
| 2022-23 | 0.64% |
| 2023-24 | 0.73% * |
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
Last one year has been tough on my investment in Asian Paints. After almost 3 years of beating the index—that too consistently—the outperformance has been been replaced with volatility and underperformance. It seems like the Russian invasion of Ukraine and Grasim’s entry into paints business has finally started showing up. At 15% XIRR I am trailing the Nifty 50 Index by 3%.
Related reading:
Note: I missed including some of my Asian Paints share purchases in previous articles. These are rectified in this post, so there will be difference between my previous analysis and this one.
