30.8 -0.3 (-0.96%) Sell

Stop-loss on the minds of MANUGRAPH investors as it performed worse than the broader market

13 min read

MANUGRAPH showed weakness today. On a longer term basis, investors in MANUGRAPH INDIA LIMITED made +0.06% per day. Friday's performance of -0.96% was a significant underperformance compared to it's daily average.

[Themes containing MANUGRAPH]

Buy-and-Hold investors in MANUGRAPH experienced a maximum drawdown of -17.19% over the last three months. It returned -9.01% during this down 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 +1.68%.


MANUGRAPH has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 3 years and 1 month, MANUGRAPH underperformed the NIFTY-50 index on 56% days.

During the last three months MANUGRAPH was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +4.27%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -5.75%) was on Thursday, 20 Dec, 2018. There was initially a bullish trend during this period which started on 22 Oct, 2018 and went on till 24 Oct, 2018. The bullish trend returned +8.11% to investors. This was followed by a bearish trend that started on 27 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -7.23% of investor capital.

On monthly basis, MANUGRAPH delivered losses in more months over the last year, than profits. MANUGRAPH delivered profits less regularly than NIFTY-50 index. MANUGRAPH was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -18.78% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MANUGRAPH had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -39.02%. It is interesting to note that both MANUGRAPH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

George Soros is one of the few characters from the world of finance who deserves to be called larger-than-life.
-- Gary Weiss

MANUGRAPH is becoming less 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 MANUGRAPH's volatility from 22 Oct, 2018 to 8 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 MANUGRAPH has significant negative skewness in it's return distribution. This indicates that MANUGRAPH is very risky for short-term investment and can significantly underperform for long durations.

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

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

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