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

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.

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Monthly Performance

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Return distribution

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.