INDIAN HUME PIPE CO. LTD. was among the worst performers on Wednesday. It lost -1.57% to close at 335.55. It is currently trading +40% above it's 52 week low of 238.1 and is down only -21% from it's 52 week high.
Buy-and-Hold investors in INDIANHUME experienced a maximum drawdown of -13.67% over the last three months. It returned +31.28% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +13.09%.
INDIANHUME has been underperforming the NIFTY-50 index in recent time, after having outperformed till 31 Aug, 2017. Over the last 3 years and 1 month, INDIANHUME outperformed the NIFTY-50 index on 44% days. Which indicates that on days INDIANHUME outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months INDIANHUME delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +12.56%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -4.13%) was on Monday, 24 Dec, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 7 Nov, 2018. The bullish trend returned +10.55% to investors. This was followed by a bearish trend that started on 11 Jan, 2019 and ended on 21 Jan, 2019. This bearish trend lost -6.43% of investor capital.
INDIANHUME had 6 profitable and 6 loss making months over the last year. INDIANHUME was profitable in more months than NIFTY-50 index. INDIANHUME was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -21.79% compared to -6.42% returned by NIFTY-50 index in Sep 2018. INDIANHUME 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 +34.49%. It is interesting to note that both INDIANHUME and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.
-- Jeroen Dijsselbloem
INDIANHUME 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 INDIANHUME's volatility from 29 Oct, 2018 to 13 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 INDIANHUME has significant negative skewness in it's return distribution. This indicates that INDIANHUME is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than INDIANHUME. Therefore, NIFTY-50 must receive a lower allocation than INDIANHUME in your portfolio. NIFTY-50 index usually has shorter drawdown period than INDIANHUME.
On a general note (since you are interested in INDIANHUME), three mid cap instruments that deserve special mention are BATAINDIA, KARURVYSYA and LTTS. They have all outperformed the market and must be closely watched for investment opportunities.
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