HBL POWER SYSTEMS LTD.

27.0 +0.1 (+0.37%) Sell

Joy for HBLPOWER investors as it marginally outperforms

15 min read

HBL POWER SYSTEMS LTD. showed marginal outperformance on Wednesday. It increased by +0.37% to close at 27.0. On a day when the overall market breadth was 70%, it closed higher than 65% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing HBLPOWER]

HBLPOWER is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +2.68% for investors.

Trend

HBLPOWER has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 26 Dec, 2017 to 1 Oct, 2018. Over the last 3 years and 1 month, HBLPOWER underperformed the NIFTY-50 index on 55% days.

During the last three months HBLPOWER delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +15.53%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -5.37%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 11 Dec, 2018 and went on till 19 Dec, 2018. This bullish trend returned +17.96% to investors.

The last 12 months saw HBLPOWER's investors making profits in 4 months and incurring losses in 8 months. During the last year, HBLPOWER and NIFTY-50 index had the same number of profitable months. HBLPOWER was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -20.47% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HBLPOWER and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both HBLPOWER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investing is a business, investment is a project and investor is a promoter.
-- Vijay Kedia

HBLPOWER 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 HBLPOWER's volatility from 29 Oct, 2018 to 2 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 HBLPOWER has significant negative skewness in it's return distribution. This indicates that HBLPOWER is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in HBLPOWER you may find it interesting to know that MANINFRA has delivered similar performance as HBLPOWER and can be considered as an alternative investment candidate (to HBLPOWER).

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