PARENTERAL DRUGS LTD

11.2 +2.22 (+19.79%) Buy

PDPL continues to mint money for it's investors

13 min read

PDPL was among the best performers today. On a longer term basis, investors in PARENTERAL DRUGS LTD made -0.0% per day. Friday's performance of +19.79% was a significant outperformance compared to it's daily average.

[Themes containing PDPL]

Buy-and-Hold investors in PDPL experienced a maximum drawdown of -16.24% over the last three months. It returned +34.94% during this strong up 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 +14.89%.

Trend

PDPL has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, PDPL underperformed the NIFTY-50 index on 56% days.

During the last three months PDPL delivered losses on 52% days. However, it still managed to end this period in a profit. It's best return during this period (of +19.79%) was on Friday, 18 Jan, 2019. While it's worst loss in the same period (of -8.12%) was on Friday, 30 Nov, 2018. There was initially a bullish trend during this period which started on 5 Nov, 2018 and went on till 7 Nov, 2018. The bullish trend returned +17.07% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 13 Nov, 2018. This bearish trend lost -5.47% of investor capital.

PDPL had 4 profitable and 8 loss making months over the last year. During the last year, PDPL underperformed NIFTY-50 index on monthly return basis. PDPL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +40.76% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PDPL had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Mar 2018 to Jul 2018) during which period it delivered -80.07%. It is interesting to note that both PDPL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"My father, being a Scotsman, taught me to look after finances. I'm shrewd. Some people may call me tight.

PDPL is becoming more 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 PDPL'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 PDPL has significant negative skewness in it's return distribution. This indicates that PDPL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in PDPL), two instruments that have been extremely volatile in recent times are TIDEWATER and SRIPIPES. Investors in these instruments should consider reducing their exposure (to TIDEWATER and SRIPIPES) and diversifying their portfolios.

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