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A ₹5,000 SIP in Tata Motors vs M&M, who would have given high returns? check the details here
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7 min read | Updated on May 22, 2024, 19:04 IST
SUMMARY
Tata Motors vs M&M, which auto stock has managed to deliver the best stock SIP return and managed to outperform and generate alpha; Read on to know more.
SIP in two automobile majors two years ago nearly twice wealth from the investment
Almost every one of you would now be familiar with mutual fund SIP or at least know - What it is and how important it is to start one if you haven’t. However, with changing times, Do-It-Yourself (DIY) stock SIP have also become a preferred choice for investors.
In a Do-It-Yourself stock SIP, investors select a stock and invest a fixed amount in it at regular intervals, typically every month.
In this blog, we have compared two famous stocks of the D-Street from the Auto Sector. One is from the Mahindra Group – Mahindra and Mahindra (M&M) and the second is from the group of Tata’s – Tata Motors.
Stock SIP – Mahindra & Mahindra vs Tata Motors
As normal SIP works, it is set for a particular day of the month mostly after salaries are credited. We have set day 10 of each month as the SIP date and the purchase price has been set as the closing price of that day.
The SIP amount is ₹5,000 each month and the amount which goes unutilised gets added to the next month's ₹5,000 SIP.
For example, in the case of M&M closing price of May 10, 2022, was ₹878.47. Hence investors could only purchase 5 stocks amounting to ₹4,392.33 and the rest of the unutilised amount ₹607.67 is added to the June 10, 2022 SIP of ₹5,000. This brings the total of the final SIP amount for that date to ₹5,607.64.
Mahindra & Mahindra Stock SIP Calculation
| Date | M&M Closing price (Rs) | SIP Spending Limit (starts with Rs 5000) | M&M Stock purchase per month | SIP amount Spent (Rs) | Remainder SIP amount |
|---|---|---|---|---|---|
| May 10, 2022 | 878.47 | 5,000.00 | 5 | 4,392.33 | 607.67 |
| Jun 10, 2022 | 1,026.95 | 5,607.67 | 5 | 5,134.74 | 472.93 |
| Jul 08, 2022 | 1,121.18 | 5,472.93 | 4 | 4,484.73 | 988.20 |
| Aug 10, 2022 | 1,267.40 | 5,988.20 | 4 | 5,069.60 | 918.60 |
| Sep 09, 2022 | 1,300.85 | 5,918.60 | 4 | 5,203.40 | 715.20 |
| Oct 10, 2022 | 1,243.00 | 5,715.20 | 4 | 4,972.00 | 743.20 |
| Nov 10, 2022 | 1,297.95 | 5,743.20 | 4 | 5,191.80 | 551.40 |
| Dec 09, 2022 | 1,265.50 | 5,551.40 | 4 | 5,062.00 | 489.40 |
| Jan 10, 2023 | 1,314.80 | 5,489.40 | 4 | 5,259.20 | 230.20 |
| Feb 10, 2023 | 1,365.20 | 5,230.20 | 3 | 4,095.60 | 1,134.60 |
| Mar 10, 2023 | 1,226.70 | 6,134.60 | 5 | 6,133.50 | 1.10 |
| Apr 10, 2023 | 1,188.35 | 5,001.10 | 4 | 4,753.40 | 247.70 |
| May 10, 2023 | 1,249.00 | 5,247.70 | 4 | 4,996.00 | 251.70 |
| Jun 09, 2023 | 1,369.20 | 5,251.70 | 3 | 4,107.60 | 1,144.10 |
| Jul 10, 2023 | 1,550.70 | 6,144.10 | 3 | 4,652.10 | 1,492.00 |
| Aug 10, 2023 | 1,545.60 | 6,492.00 | 4 | 6,182.40 | 309.60 |
| Sep 08, 2023 | 1,567.70 | 5,309.60 | 3 | 4,703.10 | 606.50 |
| Oct 10, 2023 | 1,538.15 | 5,606.50 | 3 | 4,614.45 | 992.05 |
| Nov 10, 2023 | 1,524.20 | 5,992.05 | 3 | 4,572.60 | 1,419.45 |
| Dec 08, 2023 | 1,668.60 | 6,419.45 | 3 | 5,005.80 | 1,413.65 |
| Jan 10, 2024 | 1,631.25 | 6,413.65 | 3 | 4,893.75 | 1,519.90 |
| Feb 09, 2024 | 1,646.85 | 6,519.90 | 3 | 4,940.55 | 1,579.35 |
| Mar 07, 2024 | 1,896.25 | 6,579.35 | 3 | 5,688.75 | 890.60 |
| Apr 10, 2024 | 2,075.60 | 5,890.60 | 2 | 4,151.20 | 1,739.40 |
| May 10, 2024 | 2,192.70 | 6,739.40 | 3 | 6,578.10 | 161.30 |
| Total | - | - | 90 | 1,24,838.70 | - |
Source: BSE
| Mahindra and Mahindra Ltd | |
|---|---|
| Stocks accumulated | 90 |
| SIP Investment amount (Rs) | 1,24,838.70 |
| Average Price | 1,387.10 |
| Current Price (closing May 21, 2024) | 2,522.20 |
| Investment now | 2,26,998.00 |
| Profit (%) | 81.83% |
Above table analyses the Mahindra & Mahindra (M&M) Ltd SIP over the past 2 years and reveals that the sip in the stock has delivered 81.83% returns.
Following is an exactly similar analysis of Tata Motors Ltd
| Date | Tata Motors Closing price (Rs) | SIP Spending Limit (starts with Rs 5000) | Tata Motors purchase per month | SIP amount Spent (Rs) | Remainder SIP amount |
|---|---|---|---|---|---|
| May 10, 2022 | 391.70 | 5,000.00 | 12 | 4,700.40 | 299.60 |
| Jun 10, 2022 | 428.20 | 5,299.60 | 12 | 5,138.40 | 161.20 |
| Jul 08, 2022 | 441.60 | 5,161.20 | 11 | 4,857.60 | 303.60 |
| Aug 10, 2022 | 475.60 | 5,303.60 | 11 | 5,231.60 | 72.00 |
| Sep 09, 2022 | 446.00 | 5,072.00 | 11 | 4,906.00 | 166.00 |
| Oct 10, 2022 | 395.95 | 5,166.00 | 13 | 5,147.35 | 18.65 |
| Nov 10, 2022 | 412.20 | 5,018.65 | 12 | 4,946.40 | 72.25 |
| Dec 09, 2022 | 413.35 | 5,072.25 | 12 | 4,960.20 | 112.05 |
| Jan 10, 2023 | 413.05 | 5,112.05 | 12 | 4,956.60 | 155.45 |
| Feb 10, 2023 | 445.60 | 5,155.45 | 11 | 4,901.60 | 253.85 |
| Mar 10, 2023 | 435.75 | 5,253.85 | 12 | 5,229.00 | 24.85 |
| Apr 10, 2023 | 461.05 | 5,024.85 | 10 | 4,610.50 | 414.35 |
| May 10, 2023 | 509.45 | 5,414.35 | 10 | 5,094.50 | 319.85 |
| Jun 09, 2023 | 562.20 | 5,319.85 | 9 | 5,059.80 | 260.05 |
| Jul 10, 2023 | 618.45 | 5,260.05 | 8 | 4,947.60 | 312.45 |
| Aug 10, 2023 | 618.10 | 5,312.45 | 8 | 4,944.80 | 367.65 |
| Sep 08, 2023 | 627.15 | 5,367.65 | 8 | 5,017.20 | 350.45 |
| Oct 10, 2023 | 630.60 | 5,350.45 | 8 | 5,044.80 | 305.65 |
| Nov 10, 2023 | 650.80 | 5,305.65 | 8 | 5,206.40 | 99.25 |
| Dec 08, 2023 | 714.65 | 5,099.25 | 7 | 5,002.55 | 96.70 |
| Jan 10, 2024 | 808.25 | 5,096.70 | 6 | 4,849.50 | 247.20 |
| Feb 09, 2024 | 914.95 | 5,247.20 | 5 | 4,574.75 | 672.45 |
| Mar 07, 2024 | 1,039.35 | 5,672.45 | 5 | 5,196.75 | 475.70 |
| Apr 10, 2024 | 1,013.15 | 5,475.70 | 5 | 5,065.75 | 409.95 |
| May 10, 2024 | 1,046.85 | 5,409.95 | 5 | 5,234.25 | 175.70 |
| Total | - | - | 231 | 1,24,824.30 | - |
Source: BSE
Being priced less than M&M Ltd the stocks in the SIP are greater than that of its counterpart although the investment amount is almost similar.
| Tata Motors Ltd | |
|---|---|
| Stocks accumulated | 231.00 |
| SIP Investment amount (Rs) | 1,24,824.30 |
| Average Price | 540.36 |
| Current Price (closing May 21, 2024) | 951.15 |
| Investment now | 2,19,715.65 |
| Profit (%) | 76.02% |
Analysing the Stock SIP in Tata Motors Ltd reveals that it has delivered 76.02% returns over the past 2 years. From the above analysis, we can conclude that Tata Motors' stock SIP would have underperformed the M&M Ltd Stock SIP.
Similarly, as the above analysis is carried out, we have used the same steps for 1-year stock sip in both stocks. Here we found that M&M Ltd stock SIP has outperformed Tata Motors stock SIP by a huge margin of 22.68%. This indicates superior momentum in the M&M stock in the past 1 year as compared to Tata Motors.
So, in both the 1-year and 2-year time frame, the stock SIP in Mahindra and Mahindra has outperformed.
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