AJANTA PHARMA LIMITED

1140.8 -10.65 (-0.93%) Buy

AJANTPHARM investors treading cautiously as performance is muted

13 min read

AJANTPHARM underperformed today. On a longer term basis, investors in AJANTA PHARMA LIMITED made +0.09% per day. Friday's performance of -0.93% was a significant underperformance compared to it's daily average.

[Themes containing AJANTPHARM]

Buy-and-Hold investors in AJANTPHARM experienced a maximum drawdown of -12.67% over the last three months. It returned +13.81% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

AJANTPHARM has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Oct, 2016. Over the last 3 years and 1 month, AJANTPHARM underperformed the NIFTY-50 index on 51% days.

During the last three months AJANTPHARM delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.43%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -3.75%) was on Friday, 7 Dec, 2018. There was initially a bullish trend during this period which started on 15 Nov, 2018 and went on till 19 Nov, 2018. The bullish trend returned +5.84% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -13.35% of investor capital.

AJANTPHARM had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of AJANTPHARM and NIFTY-50 index were the same. AJANTPHARM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -28.99% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AJANTPHARM had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -36.56%.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

AJANTPHARM is becoming less 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 AJANTPHARM's volatility from 11 Dec, 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 AJANTPHARM has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in AJANTPHARM derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in AJANTPHARM), two small cap instruments that deserve special mention are VINATIORGA and NIITTECH. They have significantly outperformed the overall market.

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