SHREE RENUKA SUGARS LTD

10.7 -0.39 (-3.6%) Sell

The party never started for RENUKA investors as it destroyed investor wealth

13 min read

SHREE RENUKA SUGARS LTD significantly underperformed on Friday. It returned -3.6% to close at 10.7. On a day when the overall market breadth was 71%, it closed higher than 24% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing RENUKA]

RENUKA is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +6.65% for investors.

Trend

RENUKA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Jul, 2017. Over the last 3 years and 1 month, RENUKA underperformed the NIFTY-50 index on 58% days.

During the last three months RENUKA was mostly loss making and delivered on average -0.36% per day. It's best return during this period (of +6.02%) was on Tuesday, 8 Jan, 2019. While it's worst loss in the same period (of -4.02%) was on Wednesday, 28 Nov, 2018. There was initially a bullish trend during this period which started on 7 Nov, 2018 and went on till 12 Nov, 2018. The bullish trend returned +6.49% to investors. This was followed by a bearish trend that started on 22 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -8.95% of investor capital.

On monthly basis, RENUKA delivered losses in more months over the last year, than profits. RENUKA delivered profits less regularly than NIFTY-50 index. RENUKA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -19.37% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RENUKA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered -28.49%. It is interesting to note that both RENUKA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Don't always trust what you see. In a bull market even a duck looks like a swan.
-- Vijay Kedia

RENUKA 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 RENUKA's volatility from 19 Oct, 2018 to 31 Dec, 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 RENUKA has significant negative skewness in it's return distribution. This indicates that RENUKA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in RENUKA), NIITTECH has performed really well this year and deserves to be closely tracked for investment opportunities.

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