47.6 +0.15 (+0.32%) Buy

Don't lose faith in KAMATHOTEL now, it delivered good returns

13 min read

KAMAT HOTELS (I) LTD performed better than the broader market on Friday. It returned +0.32% to close at 47.6. It is currently trading -69% below it's 52 week high of 156.55.

[Themes containing KAMATHOTEL]

KAMATHOTEL showed a up trend over the last 3 months. During this period KAMATHOTEL returned +3.59% and saw a maximum drawdown of -14.81%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in KAMATHOTEL till volatility reduces and a clear trend emerges.


KAMATHOTEL has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, KAMATHOTEL underperformed the NIFTY-50 index on 54% days.

During the last three months KAMATHOTEL delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +19.6%) was on Tuesday, 18 Dec, 2018. While it's worst loss in the same period (of -6.46%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 13 Nov, 2018 and went on till 16 Nov, 2018. The bullish trend returned +2.67% to investors. This was followed by a bearish trend that started on 19 Dec, 2018 and ended on 26 Dec, 2018. This bearish trend lost -15.74% of investor capital.

On monthly basis, KAMATHOTEL delivered losses in more months over the last year, than profits. KAMATHOTEL delivered profits less regularly than NIFTY-50 index. KAMATHOTEL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -34.15% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KAMATHOTEL had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -44.85%. It is interesting to note that both KAMATHOTEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

KAMATHOTEL 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 KAMATHOTEL's volatility from 24 Oct, 2018 to 17 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 KAMATHOTEL has significant negative skewness in it's return distribution. This indicates that KAMATHOTEL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in KAMATHOTEL), NIITTECH is a small cap that deserves to be closely tracked for investment opportunities.

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