Rites

Reasons for buying:

Buy PE was reasonable at 12.87.

Earnings growth is good since 2013 although there is a dip in 2016.

Return on equity is good at 24%.

The debt of the company is ₹40.26cr with ₹3,742.4cr cash.

The market cap of the company is ₹5,955.88cr.

Buy date: 17-Nov-2020

Qty: 40   Buy Price: ₹248    Buy EPS: 19.26    Buy PE: 12.87

Q4 results were not released but the current EPS is 18.05 down about -6.28% from my buy EPS after Q3 results.

The price of the stock is down about -0.01% from my buy price and received ₹360 as dividends so far. 

The main difference between dividend-paying stocks and non-dividend-paying stocks is that when we look at 10-year returns the non-dividend stocks may give better returns because they reinvest their earnings but we have to actually reinvest dividends to compare them.

Example: SJVN may have given a price return of 2.56% per year over the last 10 years, but reinvesting dividends would have given 9.31%.