ARCHIDPLY IND. LTD

41.8 -0.74 (-1.76%) Buy

Looking to invest in ARCHIDPLY? Look for alternatives because it delivered lacklustre performance

13 min read

ARCHIDPLY is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in ARCHIDPLY IND. LTD made +0.17% per day. Friday's performance of -1.76% was a underperformance compared to it's daily average.

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ARCHIDPLY showed a bearish trend over the last 3 months. During this period ARCHIDPLY fell by -5.96% and saw a maximum drawdown of -21.75%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ARCHIDPLY till volatility reduces and a clear trend emerges.

Trend

ARCHIDPLY has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 15 Jan, 2018 to 28 Sep, 2018. Over the last 3 years and 1 month, ARCHIDPLY underperformed the NIFTY-50 index on 57% days.

ARCHIDPLY returned losses on 59% days in the last three months. During this time, it delivered on average -0.06% per day. It delivered it's best daily return of +8.37%, during this period, on Monday, 7 Jan, 2019. The longest stort-term trend during this period was 5 losing days, which started on 12 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -14.88% of investor capital.

During the last year ARCHIDPLY had 4 profitable months and 8 loss making months. ARCHIDPLY returned profits in fewer months than NIFTY-50 index. ARCHIDPLY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -34.6% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ARCHIDPLY and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both ARCHIDPLY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.

ARCHIDPLY 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 ARCHIDPLY's volatility from 22 Oct, 2018 to 7 Dec, 2018. 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 ARCHIDPLY has significant negative skewness in it's return distribution. This indicates that ARCHIDPLY is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ARCHIDPLY you may find it interesting to know that SRIPIPES and ~HOMEAPPLIANCES are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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