131.3 -5.05 (-3.84%) Buy

RPPINFRA investors herd to book profits while the going is good

13 min read

R.P.P INFRA PROJECTS LTD significantly underperformed on Friday. It lost -3.84% to close at 131.3. It is currently trading -57% below it's 52 week high of 309.45.

[Themes containing RPPINFRA]

RPPINFRA showed a down trend over the last 3 months. During this period RPPINFRA lost -3.77% and saw a maximum drawdown of -21.07%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in RPPINFRA till volatility reduces and a clear trend emerges.


RPPINFRA has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, RPPINFRA underperformed the NIFTY-50 index on 55% days.

During the last three months RPPINFRA delivered losses on 57% days. However, it still managed to end this period in a profit. It's best return during this period (of +17.32%) was on Thursday, 13 Dec, 2018. While it's worst loss in the same period (of -8.55%) was on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 5 Dec, 2018 and went on till 12 Dec, 2018. The trend delivered -15.52% losses to investors. This was followed by a bullish trend that started on 11 Jan, 2019 and ended on 17 Jan, 2019. This bullish trend delivered +10.59% to investors.

RPPINFRA had 4 profitable and 8 loss making months over the last year. During the last year, RPPINFRA underperformed NIFTY-50 index on monthly return basis. RPPINFRA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -33.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RPPINFRA had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Mar 2018 to Jun 2018) during which period it delivered -36.18%. It is interesting to note that both RPPINFRA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more.
-- Charles Caleb Colton

RPPINFRA 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 RPPINFRA's volatility from 22 Oct, 2018 to 5 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 RPPINFRA has significant negative skewness in it's return distribution. This indicates that RPPINFRA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in RPPINFRA), two instruments that deserve special mention are RESPONIND and SPLIL. They have significantly outperformed the overall market this year.

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