LAMBODHARA investors take a moment to reassess their portfolio allocation

LAMBODHARA TEXTILES LTD. trailed the broader market on Friday. It fell by -1.27% to close at 42.6. On a day when the overall market breadth was 71%, it closed higher than 9% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

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Buy-and-Hold investors in LAMBODHARA experienced a maximum drawdown of -18.48% over the last three months. It delivered +6.37% during this 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.

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Monthly Performance

Alpha (outperformance)

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Return distribution

LAMBODHARA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 27 Aug, 2018. Over the last 3 years and 1 month, LAMBODHARA underperformed the NIFTY-50 index on 59% days.

During the last three months LAMBODHARA was mostly profitable and delivered on average +0.12% per day. It's best return during this period (of +7.06%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -5.39%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 29 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +8.93% to investors.

During the last year LAMBODHARA had 4 profitable months and 8 loss making months. LAMBODHARA returned profits in fewer months than NIFTY-50 index. LAMBODHARA significantly outperformed NIFTY-50 index in Aug 2018, when it returned +25.65% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LAMBODHARA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -46.22%. It is interesting to note that both LAMBODHARA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

LAMBODHARA 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 surge in LAMBODHARA's volatility from 22 Oct, 2018 to 16 Nov, 2018. 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 LAMBODHARA has significant negative skewness in it's return distribution. This indicates that LAMBODHARA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in LAMBODHARA you may find it interesting to know that KTIL and TGBHOTELS have both performed similar to LAMBODHARA and can be considered by investors as alternative investment options.