KPIT TECHNOLOGIES LTD

216.15 +2.63 (+1.22%) Buy

KPIT continues to mint money for it's investors

13 min read

KPIT TECHNOLOGIES LTD delivered stellar performance on Friday. It gained +1.22% to close at 216.15. It is currently trading -30% below it's 52 week high of 310.1.

[Themes containing KPIT]

KPIT is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +2.1%) for KPIT's investors than trading long signals.

Trend

KPIT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 10 Sep, 2018. Over the last 3 years and 1 month, KPIT underperformed the NIFTY-50 index on 51% days.

KPIT was profitable on 50% days in the last three months. During this time, it delivered on average +0.05% per day. It delivered it's best daily return of +5.01%, during this period, on Wednesday, 19 Dec, 2018. There was initially a bullish trend during this period which started on 26 Nov, 2018 and went on till 29 Nov, 2018. The bullish trend returned +3.59% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 8 Jan, 2019. This bearish trend lost -5.27% of investor capital.

On monthly basis, KPIT delivered profits in more months over the last year, than losses. KPIT delivered profits in more months than NIFTY-50 index. KPIT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -29.57% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KPIT had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Feb 2018 to May 2018) during which period it delivered +25.48%. It is interesting to note that both KPIT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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KPIT is becoming more 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 KPIT's volatility from 19 Oct, 2018 to 10 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 KPIT has significant positive skewness in it's return distribution. This indicates that investors can expect KPIT to recover from drawdowns quickly. Which makes KPIT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in KPIT derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

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

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