881.15 -17.35 (-1.97%) Sell

IMPAL investors dump it for better alternatives

13 min read

IND MOTOR PART & ACC LTD delivered massive losses today. It lost -1.97% to close at 881.15. During the last week it grew by +0.82% and saw a maximum drawdown of -1.97% before bouncing back.

[Themes containing IMPAL]

Buy-and-Hold investors in IMPAL experienced a maximum drawdown of -7.23% over the last three months. It returned +0.21% during this flat trending period. There were no long signals during this period. However, the short signal was not profitable and lost investors -0.21%.


IMPAL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jan, 2018. Over the last 3 years and 1 month, IMPAL underperformed the NIFTY-50 index on 50% days. Which indicates that on days IMPAL underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months IMPAL was mostly profitable and delivered on average +0.01% per day. It's best return during this period (of +3.23%) was on Thursday, 10 Jan, 2019. While it's worst loss in the same period (of -3.42%) was on Monday, 24 Dec, 2018. There was initially a bullish trend during this period which started on 2 Nov, 2018 and went on till 7 Nov, 2018. The bullish trend returned +3.63% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 4 Jan, 2019. This bearish trend lost -2.02% of investor capital.

IMPAL had 3 profitable and 9 loss making months over the last year. During the last year, IMPAL underperformed NIFTY-50 index on monthly return basis. IMPAL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -8.1% compared to -6.42% returned by NIFTY-50 index in Sep 2018. IMPAL had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -27.43%. It is interesting to note that both IMPAL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

My formula for success is rise early, work late and strike oil.
-- JP Getty

IMPAL is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in IMPAL's volatility from 22 Oct, 2018 to 30 Nov, 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 IMPAL has significant negative skewness in it's return distribution. This indicates that IMPAL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in IMPAL), three instruments that deserve special mention are NIFTY-GS-15YRPLUS, BAJFINANCE and ~MKTCAP201TO250. They have all outperformed the market and must be closely watched for investment opportunities.

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