39.45 +0.2 (+0.51%) Buy

Are you evaluating investing in INDRAMEDCO? Consider as it performed better than the broader market

13 min read

INDRAPRASTHA MEDICAL CORP performed better than the broader market on Friday. It returned +0.51% to close at 39.45. It is currently trading -34% below it's 52 week high of 60.3.

[Themes containing INDRAMEDCO]

INDRAMEDCO showed a down trend over the last 3 months. During this period INDRAMEDCO lost -1.13% and saw a maximum drawdown of -6.33%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in INDRAMEDCO till volatility reduces and a clear trend emerges.


INDRAMEDCO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, INDRAMEDCO underperformed the NIFTY-50 index on 54% days.

During the last three months INDRAMEDCO delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.09%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -2.57%) was on Wednesday, 5 Dec, 2018. There was initially a bullish trend during this period which started on 2 Nov, 2018 and went on till 12 Nov, 2018. The bullish trend returned +7.81% to investors. This was followed by a bearish trend that started on 5 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -5.87% of investor capital.

INDRAMEDCO had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of INDRAMEDCO and NIFTY-50 index were the same. INDRAMEDCO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -16.28% compared to -6.42% returned by NIFTY-50 index in Sep 2018. INDRAMEDCO and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both INDRAMEDCO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

INDRAMEDCO 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 INDRAMEDCO's volatility from 23 Oct, 2018 to 18 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 INDRAMEDCO has significant negative skewness in it's return distribution. This indicates that INDRAMEDCO is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in INDRAMEDCO), three instruments that deserve special mention are ~CHEMICALS, BRITANNIA and NIFTY-GS-15YRPLUS. 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