600.3 -7.99 (-1.33%) Buy

Are you evaluating investing in AARTIDRUGS? Wait as it delivered lacklustre performance

13 min read

AARTI DRUGS LTD. delivered lacklustre performance on Friday. It lost -1.33% to close at 600.3. It is currently trading -20% below it's 52 week high of 753.4.

[Themes containing AARTIDRUGS]

AARTIDRUGS showed a up trend over the last 3 months. During this period AARTIDRUGS grew by +2.8% and saw a maximum drawdown of -9.7%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in AARTIDRUGS till volatility reduces and a clear trend emerges.


AARTIDRUGS has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, AARTIDRUGS underperformed the NIFTY-50 index on 51% days.

During the last three months AARTIDRUGS was mostly profitable and delivered on average +0.05% per day. It's best return during this period (of +3.26%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.85%) was on Friday, 2 Nov, 2018. There was initially a bearish trend during this period which started on 13 Nov, 2018 and went on till 20 Nov, 2018. The trend delivered -5.35% losses to investors. This was followed by a bullish trend that started on 7 Jan, 2019 and ended on 14 Jan, 2019. This bullish trend delivered +8.03% to investors.

AARTIDRUGS had 6 profitable and 6 loss making months over the last year. AARTIDRUGS was profitable in more months than NIFTY-50 index. AARTIDRUGS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -15.75% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AARTIDRUGS and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both AARTIDRUGS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.

AARTIDRUGS is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in AARTIDRUGS's volatility from 5 Nov, 2018 to 9 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 AARTIDRUGS has significant negative skewness in it's return distribution. This indicates that AARTIDRUGS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in AARTIDRUGS), two mid cap instruments that deserve special mention are BATAINDIA and LTI. They have significantly outperformed the overall market.

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