12.7 -0.15 (-1.17%) Sell

A2ZINFRA investors re-evaluating their investment strategy

13 min read

A2Z INFRA ENGINEERING LTD performed worse than the broader market on Friday. It fell by -1.17% to close at 12.7. It is currently trading -70% below it's 52 week high of 43.5.

[Themes containing A2ZINFRA]

Buy-and-Hold investors in A2ZINFRA experienced a maximum drawdown of -15.44% over the last three months. It increased by +14.93% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +14.1%.


A2ZINFRA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 25 Apr, 2017 to 3 Oct, 2018. Over the last 3 years and 1 month, A2ZINFRA underperformed the NIFTY-50 index on 55% days.

During the last three months A2ZINFRA delivered losses on 61% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.09%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -5.47%) was on Monday, 3 Dec, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 2 Nov, 2018 and went on till 9 Nov, 2018. This bullish trend returned +14.42% to investors.

During the last year A2ZINFRA had 3 profitable months and 9 loss making months. A2ZINFRA returned profits in fewer months than NIFTY-50 index. A2ZINFRA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -39.23% compared to -6.42% returned by NIFTY-50 index in Sep 2018. A2ZINFRA had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -60.48%. It is interesting to note that both A2ZINFRA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.
-- Julia Cameron

A2ZINFRA is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in A2ZINFRA's volatility from 22 Oct, 2018 to 18 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that A2ZINFRA has significant negative skewness in it's return distribution. This indicates that A2ZINFRA is very risky for short-term investment and can significantly underperform for long durations.

A2ZINFRA has more chance of extreme outcomes than the NIFTY-50 index. Therefore, A2ZINFRA must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than A2ZINFRA.

Based on your interest in A2ZINFRA you may find it interesting to know that SPLIL, NIITTECH and IGARASHI have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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