42.5 -0.83 (-1.96%) Buy

Don't go shopping for MRO-TEK now, it is underperforming the market

14 min read

MRO-TEK REALTY LIMITED is a falling knife that can bleed you if you catch it today. It delivered -1.96% to close at 42.5. It's recent 5 day performance has been -0.12%, +5.08%, -1.9%, -0.36% and -0.59%.

[Themes containing MRO-TEK]

MRO-TEK showed a strong bearish trend over the last 3 months. During this period MRO-TEK delivered -12.37% and saw a maximum drawdown of -16.73%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in MRO-TEK till volatility reduces and a clear trend emerges.


MRO-TEK has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 27 Sep, 2016 to 23 Apr, 2018. Over the last 3 years and 1 month, MRO-TEK underperformed the NIFTY-50 index on 53% days.

During the last three months MRO-TEK was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +9.93%) was on Thursday, 29 Nov, 2018. While it's worst loss in the same period (of -6.16%) was on Tuesday, 13 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 14 Dec, 2018 and ended on 20 Dec, 2018. This bearish trend lost -8.0% of investor capital.

The last 12 months saw MRO-TEK's investors making profits in 5 months and incurring losses in 7 months. During the last year, MRO-TEK and NIFTY-50 index had the same number of profitable months. MRO-TEK significantly outperformed NIFTY-50 index in Jun 2018, when it returned +80.61% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MRO-TEK had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered +100.64%. It is interesting to note that both MRO-TEK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Behind every stock is a company. Find out what It's doing.

MRO-TEK 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 MRO-TEK's volatility from 23 Oct, 2018 to 18 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 MRO-TEK has positive skewness in it's return distribution. This indicates that investors can expect MRO-TEK to make attempts to recover from drawdowns quickly. Which makes MRO-TEK a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in MRO-TEK), two instruments that have delivered similar performance as MRO-TEK are WEIZMANIND and SPLIL. They are suitable as good alternative investment candidates that can diversify your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter