RUPA & COMPANY LTD

352.65 +1.51 (+0.43%) Buy

Want to invest in RUPA? Consider as it managed to marginally outperform the broader market

13 min read

RUPA managed to marginally outperform the broader market today. On a longer term basis, investors in RUPA & COMPANY LTD made +0.09% per day. Wednesday's performance of +0.43% was a significant outperformance compared to it's daily average.

[Themes containing RUPA]

RUPA showed a strong up trend over the last 3 months. During this period RUPA gained +19.93% and saw a maximum drawdown of -7.09%. There were 3 long signals during this period that returned a cumulative of +1.64% to investors.

Trend

RUPA has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, RUPA underperformed the NIFTY-50 index on 56% days.

RUPA returned losses on 51% days in the last three months. During this time, it delivered on average +0.31% per day. It delivered it's best daily return of +8.04%, during this period, on Tuesday, 30 Oct, 2018. There was initially a bearish trend during this period which started on 3 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -5.29% losses to investors. This was followed by a bullish trend that started on 28 Dec, 2018 and ended on 3 Jan, 2019. This bullish trend delivered +10.8% to investors.

On monthly basis, RUPA delivered profits in more months over the last year, than losses. RUPA delivered profits in more months than NIFTY-50 index. RUPA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.92% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RUPA 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 +21.62%. It is interesting to note that both RUPA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.

RUPA 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 RUPA's volatility from 30 Oct, 2018 to 23 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 RUPA has significant negative skewness in it's return distribution. This indicates that RUPA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in RUPA), two large cap instruments that deserve special mention are TORNTPHARM and BAJAJFINSV. They have significantly outperformed the overall market.

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