1047.25 -25.18 (-2.4%) Buy

LALPATHLAB investors herd to book profits while the going is good

13 min read

DR. LAL PATH LABS LTD. significantly underperformed on Friday. It fell by -2.4% to close at 1047.25. It is currently trading +30% above it's 52 week low of 801.6 and is down only -2% from it's 52 week high.

[Themes containing LALPATHLAB]

Buy-and-Hold investors in LALPATHLAB experienced a maximum drawdown of -10.45% over the last three months. It delivered +13.0% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +10.84%.


LALPATHLAB has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 21 Nov, 2016 to 26 Oct, 2017. Over the last 3 years and 1 month, LALPATHLAB underperformed the NIFTY-50 index on 52% days.

During the last three months LALPATHLAB was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +5.06%) was on Thursday, 17 Jan, 2019. While it's worst loss in the same period (of -3.45%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 26 Nov, 2018 and went on till 29 Nov, 2018. This bullish trend returned +0.82% to investors.

During the last year LALPATHLAB had 7 profitable months and 5 loss making months. LALPATHLAB returned profits in more months than NIFTY-50 index. LALPATHLAB significantly outperformed NIFTY-50 index in Jan 2019, when it returned +15.04% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LALPATHLAB had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from May 2018 to Aug 2018) during which period it delivered +27.29%.

"Derivatives are financial weapons of mass destruction.

LALPATHLAB is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in LALPATHLAB's volatility from 6 Dec, 2018 to 9 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 LALPATHLAB has significant negative skewness in it's return distribution. This indicates that LALPATHLAB is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in LALPATHLAB you may find it interesting to know that NIITTECH and ASTRAZEN are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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