DHUNSERI TEA & IND. LTD.

243.6 -1.64 (-0.67%) Sell

DTIL continues its fall as more investors loose confidence

14 min read

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.

[Themes containing DTIL]

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.

Trend

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.

I never dreamed about success, I worked for it.
-- Estee Lauder

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.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter