REPRO INDIA LIMITED

590.5 +0.95 (+0.16%) Buy

REPRO continues it's uptrend, although on a weaker note

13 min read

REPRO INDIA LIMITED performed better than the broader market on Tuesday. It returned +0.16% to close at 590.5. On a day when the overall market breadth was 70%, it closed higher than 79% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing REPRO]

REPRO showed a up trend over the last 3 months. During this period REPRO returned +8.01% and saw a maximum drawdown of -7.5%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in REPRO till volatility reduces and a clear trend emerges.

Trend

REPRO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Dec, 2017. Over the last 3 years and 1 month, REPRO underperformed the NIFTY-50 index on 54% days.

During the last three months REPRO was mostly profitable and delivered on average +0.14% per day. It's best return during this period (of +6.41%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -5.0%) was on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +10.41% to investors. This was followed by a bearish trend that started on 3 Jan, 2019 and ended on 9 Jan, 2019. This bearish trend lost -7.05% of investor capital.

On monthly basis, REPRO delivered losses in more months over the last year, than profits. REPRO delivered profits less regularly than NIFTY-50 index. REPRO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Aug 2018, returned -15.83% compared to -6.42% returned by NIFTY-50 index in Sep 2018. REPRO and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both REPRO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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REPRO is becoming less 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 REPRO's volatility from 14 Nov, 2018 to 21 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 REPRO has significant negative skewness in it's return distribution. This indicates that REPRO is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in REPRO you may find it interesting to know that HATSUN has shown remarkable performance this year and deserves to be on every investors' watchlist.

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