136.75 -0.6 (-0.44%) Buy

Waiting to invest in INDHOTEL? Look for alternatives because it underperformed broader market

14 min read

INDHOTEL underperformed broader market today. On a longer term basis, investors in THE INDIAN HOTELS CO. LTD made +0.05% per day. Friday's performance of -0.44% was a underperformance compared to it's daily average.

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INDHOTEL showed a strong bullish trend over the last 3 months. During this period INDHOTEL surged by +11.86% and saw a maximum drawdown of -9.5%. There was a long signal during this period which returned +0.77%.


INDHOTEL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 17 Jun, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, INDHOTEL underperformed the NIFTY-50 index on 53% days.

INDHOTEL was profitable on 52% days in the last three months. During this time, it delivered on average +0.19% per day. It delivered it's best daily return of +4.91%, during this period, on Monday, 22 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 8 Jan, 2019 and ended on 15 Jan, 2019. This bearish trend lost -4.2% of investor capital.

The last 12 months saw INDHOTEL's investors making profits in 6 months and incurring losses in 6 months. During the last year, INDHOTEL delivered profits in more months than NIFTY-50 index. INDHOTEL significantly outperformed NIFTY-50 index in Nov 2018, when it returned +12.0% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. INDHOTEL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +14.55%. It is interesting to note that both INDHOTEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

INDHOTEL 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 INDHOTEL's volatility from 22 Oct, 2018 to 15 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 INDHOTEL has significant negative skewness in it's return distribution. This indicates that INDHOTEL is very risky for short-term investment and can significantly underperform for long durations.

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

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

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