112.7 -0.75 (-0.66%) Sell

Don't buy RUCHIRA now, it is underperforming the market

13 min read

RUCHIRA PAPERS LIMITED performed worse than the broader market on Wednesday. It fell by -0.66% to close at 112.7. It is currently trading -42% below it's 52 week high of 196.5.

[Themes containing RUCHIRA]

RUCHIRA showed a strong bearish trend over the last 3 months. During this period RUCHIRA fell by -13.44% and saw a maximum drawdown of -25.51%. There were 2 short signals during this period that returned a cumulative of +7.52% to investors.


RUCHIRA has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 15 Jan, 2016 to 12 Jan, 2018. Over the last 3 years and 1 month, RUCHIRA outperformed the NIFTY-50 index on 47% days. Which indicates that on days RUCHIRA outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

RUCHIRA returned losses on 59% days in the last three months. During this time, it delivered on average -0.22% per day. It delivered it's best daily return of +4.31%, during this period, on Friday, 9 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 31 Oct, 2018 and went on till 9 Nov, 2018. This bullish trend returned +14.43% to investors.

During the last year RUCHIRA had 4 profitable months and 8 loss making months. Profitable number of months of RUCHIRA and NIFTY-50 index were the same. RUCHIRA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -18.64% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RUCHIRA had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -51.65%. It is interesting to note that both RUCHIRA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

My old father used to have a saying: If you make a bad bargain, hug it all the tighter.
-- Abraham Lincoln

RUCHIRA is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in RUCHIRA's volatility from 24 Oct, 2018 to 26 Oct, 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 RUCHIRA has significant negative skewness in it's return distribution. This indicates that RUCHIRA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in RUCHIRA 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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