275.8 +2.22 (+0.8%) Sell

HINDCOMPOS investors hold onto their investments as it marginally outperforms

13 min read

HINDUSTAN COMPOSITES LTD. ranked among the best performers on Tuesday. It delivered +0.8% to close at 275.8. It is currently trading -46% below it's 52 week high of 517.15.

[Themes containing HINDCOMPOS]

HINDCOMPOS is currently in a bearish trend. The current bearish signal has generated a profit of +17.71% for investors in the last three months.


HINDCOMPOS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 10 Apr, 2017 to 21 Jan, 2019. Over the last 3 years and 1 month, HINDCOMPOS underperformed the NIFTY-50 index on 55% days.

During the last three months HINDCOMPOS was mostly loss making and delivered on average -0.3% per day. It's best return during this period (of +2.63%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.98%) was on Tuesday, 1 Jan, 2019. The longest stort-term trend during this period was 9 losing days, which started on 14 Dec, 2018 and ended on 27 Dec, 2018. This bearish trend lost -8.95% of investor capital.

During the last year HINDCOMPOS had 3 profitable months and 9 loss making months. HINDCOMPOS returned profits in fewer months than NIFTY-50 index. HINDCOMPOS significantly outperformed NIFTY-50 index in Apr 2018, when it returned +15.0% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HINDCOMPOS had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -35.55%. It is interesting to note that both HINDCOMPOS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Opportunity is missed by most people because it is dressed in overalls and looks like work.
-- Thomas Edison

HINDCOMPOS 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 surge in HINDCOMPOS's volatility from 29 Nov, 2018 to 13 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 HINDCOMPOS has significant negative skewness in it's return distribution. This indicates that HINDCOMPOS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in HINDCOMPOS), three large cap instruments that deserve special mention are BRITANNIA, INFY and TORNTPHARM. They have all outperformed the market and must be closely watched for investment opportunities.

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