63.85 -1.99 (-3.11%) Sell

Doubt in the minds of ASAL investors as it significantly underperforms

13 min read

ASAL has destroyed investor wealth today. On a longer term basis, investors in AUTOMOTIVE STAMPINGS & AS made +0.1% per day. Wednesday's performance of -3.11% was a underperformance compared to it's daily average.

[Themes containing ASAL]

Buy-and-Hold investors in ASAL experienced a maximum drawdown of -22.32% over the last three months. It surged by +50.95% 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 +18.88%.


ASAL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 8 Jan, 2018 to 10 Oct, 2018. Over the last 3 years and 1 month, ASAL outperformed the NIFTY-50 index on 46% days. Which indicates that on days ASAL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

ASAL was profitable on 52% days in the last three months. During this time, it delivered on average +0.78% per day. It delivered it's best daily return of +20.0%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 2 Nov, 2018 and went on till 7 Nov, 2018. This bullish trend returned +2.4% to investors.

During the last year ASAL had 5 profitable months and 7 loss making months. ASAL returned profits in more months than NIFTY-50 index. ASAL significantly outperformed NIFTY-50 index in Dec 2018, when it returned +39.95% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ASAL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +59.32%. It is interesting to note that both ASAL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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ASAL is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ASAL's volatility from 24 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 ASAL has significant negative skewness in it's return distribution. This indicates that ASAL is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ASAL you may find it interesting to know that RESPONIND, IGARASHI and ASTRAZEN are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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