PVR LIMITED

1621.05 -12.95 (-0.8%) Buy

PVR investors not showing any loss of confidence as it pauses to catch its breath

13 min read

PVR LIMITED performed worse than the broader market today. It delivered -0.8% to close at 1621.05. During the last week it delivered -0.98% and saw a maximum drawdown of -2.38% before bouncing back.

[Themes containing PVR]

PVR is currently in a bullish trend. Over the last three months 2 bullish signals in PVR have generated a profit of +19.65% for investors.

Trend

PVR has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 21 Mar, 2016 to 28 Apr, 2017. Over the last 3 years and 1 month, PVR outperformed the NIFTY-50 index on 48% days. Which indicates that on days PVR outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

PVR was profitable on 60% days in the last three months. During this time, it delivered on average +0.37% per day. It delivered it's best daily return of +5.99%, during this period, on Monday, 3 Dec, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 24 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +10.57% to investors.

The last 12 months saw PVR's investors making profits in 7 months and incurring losses in 5 months. During the last year, PVR delivered profits in more months than NIFTY-50 index. PVR significantly outperformed NIFTY-50 index in Aug 2018, when it returned +24.46% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PVR had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +29.4%. It is interesting to note that both PVR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
-- William A. Feather

PVR 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 PVR's volatility from 26 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 PVR 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.

Investors trading in PVR derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

Based on your interest in PVR you may find it interesting to know that LTI is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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