DTIL delivered lacklustre performance today. On a longer term basis, investors in DHUNSERI TEA & IND. LTD. made +0.06% per day. Friday's performance of -0.67% was a underperformance compared to it's daily average.
DTIL showed a bearish trend over the last 3 months. During this period DTIL delivered -7.52% and saw a maximum drawdown of -12.05%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in DTIL till volatility reduces and a clear trend emerges.
DTIL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 8 Feb, 2018 to 28 Dec, 2018. Over the last 3 years and 1 month, DTIL underperformed the NIFTY-50 index on 56% days.
DTIL returned losses on 51% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's worst daily return of -4.95%, during this period, on Monday, 22 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +9.26%) started on 1 Nov, 2018 and went on till 7 Nov, 2018 while the bearish trend (which returned -8.29%) started on 14 Nov, 2018 and went on till 20 Nov, 2018.
The last 12 months saw DTIL's investors making profits in 4 months and incurring losses in 8 months. DTIL was less consistent in delivering monthly returs than NIFTY-50 index. DTIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -23.15% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DTIL and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both DTIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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DTIL 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 DTIL's volatility from 22 Oct, 2018 to 20 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 DTIL has significant negative skewness in it's return distribution. This indicates that DTIL is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than DTIL. Therefore, NIFTY-50 must receive a lower allocation than DTIL in your portfolio. NIFTY-50 index usually has shorter drawdown period than DTIL.
Based on your interest in DTIL you may find it interesting to know that INEOSSTYRO and BANARISUG have both performed similar to DTIL and can be considered by investors as alternative investment options.
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