8.05 +0.1 (+1.26%) Buy

Sun shines over KMSUGAR investors as it outperforms broader market

13 min read

KMSUGAR ranked among the best performers today. On a longer term basis, investors in K M SUGAR MILLS LTD made +0.25% per day. Friday's performance of +1.26% was a outperformance compared to it's daily average.

[Themes containing KMSUGAR]

Buy-and-Hold investors in KMSUGAR experienced a maximum drawdown of -16.4% over the last three months. It fell by -10.06% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +4.62%.


KMSUGAR has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 12 Feb, 2016 to 7 Feb, 2017. Over the last 3 years and 13 days, KMSUGAR outperformed the NIFTY-50 index on 44% days. Which indicates that on days KMSUGAR 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 KMSUGAR was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +5.0%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -4.02%) was on Monday, 26 Nov, 2018. The longest stort-term trend during this period was 4 losing days, which started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -6.5% of investor capital.

During the last year KMSUGAR had 5 profitable months and 7 loss making months. Profitable number of months of KMSUGAR and NIFTY-50 index were the same. KMSUGAR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -32.01% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KMSUGAR had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered +18.69%. It is interesting to note that both KMSUGAR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It's how you deal with failure that determines how you achieve success.
-- David Feherty

KMSUGAR 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 KMSUGAR's volatility from 26 Oct, 2018 to 2 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 KMSUGAR has significant negative skewness in it's return distribution. This indicates that KMSUGAR is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in KMSUGAR you may find it interesting to know that RESPONIND, SPLIL and IGARASHI have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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