PRAJAY ENG. SYN. LTD. showed marginal outperformance on Wednesday. It increased by +0.6% to close at 8.45. It is currently trading -52% below it's 52 week high of 17.95.
PRAENG showed a strong bearish trend over the last 3 months. During this period PRAENG fell by -15.08% and saw a maximum drawdown of -16.42%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in PRAENG till volatility reduces and a clear trend emerges.
PRAENG has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 10 Jan, 2018 to 23 Jul, 2018. Over the last 3 years and 1 month, PRAENG underperformed the NIFTY-50 index on 53% days.
During the last three months PRAENG was mostly loss making and delivered on average -0.24% per day. It's best return during this period (of +5.14%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -4.86%) was on Wednesday, 5 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 31 Oct, 2018 and ended on 6 Nov, 2018. This bearish trend lost -7.69% of investor capital.
During the last year PRAENG had 3 profitable months and 9 loss making months. PRAENG returned profits in fewer months than NIFTY-50 index. PRAENG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -23.05% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PRAENG had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -57.07%. It is interesting to note that both PRAENG 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
PRAENG 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 PRAENG's volatility from 24 Oct, 2018 to 29 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 PRAENG has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
NIFTY-50 index has more chance of extreme outcomes than PRAENG. Therefore, NIFTY-50 must receive a lower allocation than PRAENG in your portfolio. NIFTY-50 index usually has shorter drawdown period than PRAENG.
Based on your interest in PRAENG you may find it interesting to know that BRITANNIA has shown remarkable performance and deserves to be on every investors' watchlist.
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