376.7 -2.38 (-0.63%) Sell

LAURUSLABS investors take a moment to reassess their portfolio allocation

13 min read

LAURUS LABS LIMITED delivered lacklustre performance on Tuesday. It fell by -0.63% to close at 376.7. It is currently trading -32% below it's 52 week high of 554.8.

[Themes containing LAURUSLABS]

LAURUSLABS is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for LAURUSLABS's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +0.41%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to LAURUSLABS.


LAURUSLABS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 3 Jul, 2017 to 31 Oct, 2018. Over the last 2 years 1 month and 3 day, LAURUSLABS underperformed the NIFTY-50 index on 54% days.

During the last three months LAURUSLABS delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.62%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.6%) was on Thursday, 25 Oct, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +9.7%) started on 14 Nov, 2018 and went on till 19 Nov, 2018 while the bearish trend (which returned -1.99%) started on 7 Jan, 2019 and went on till 10 Jan, 2019.

During the last year LAURUSLABS had 3 profitable months and 9 loss making months. LAURUSLABS returned profits in fewer months than NIFTY-50 index. LAURUSLABS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -20.44% compared to -6.42% returned by NIFTY-50 index in Sep 2018. LAURUSLABS had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -37.58%.

"When you're building a company, you need to continually strengthen every component - finance, strategic partnerships, executive team, and relationships with every last constituency.

LAURUSLABS 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 LAURUSLABS's volatility from 24 Oct, 2018 to 21 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 LAURUSLABS has significant negative skewness in it's return distribution. This indicates that LAURUSLABS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in LAURUSLABS), two small cap instruments that deserve special mention are IGARASHI and RESPONIND. They have significantly outperformed the overall market.

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