SAKTHI SUGARS LTD

12.7 -0.15 (-1.17%) Buy

Don't consider investing in SAKHTISUG now, it is risky at the moment

13 min read

SAKTHI SUGARS LTD ranked worse than it's peers today. It returned -1.17% to close at 12.7. It's recent 5 day performance has been -0.39%, -0.39%, +0.78%, +0.39% and +0.39%.

[Themes containing SAKHTISUG]

SAKHTISUG showed a down trend over the last 3 months. During this period SAKHTISUG returned -7.64% and saw a maximum drawdown of -15.89%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SAKHTISUG till volatility reduces and a clear trend emerges.

Trend

SAKHTISUG has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 Jun, 2016. Over the last 3 years and 1 month, SAKHTISUG underperformed the NIFTY-50 index on 59% days.

During the last three months SAKHTISUG was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +4.94%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -4.64%) was on Wednesday, 14 Nov, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -5.14% losses to investors. This was followed by a bullish trend that started on 7 Nov, 2018 and ended on 13 Nov, 2018. This bullish trend delivered +10.25% to investors.

On monthly basis, SAKHTISUG delivered losses in more months over the last year, than profits. SAKHTISUG delivered profits less regularly than NIFTY-50 index. SAKHTISUG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -20.34% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SAKHTISUG 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 -53.19%. It is interesting to note that both SAKHTISUG and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.
-- Aristotle

SAKHTISUG 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 SAKHTISUG's volatility from 19 Oct, 2018 to 17 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 SAKHTISUG has significant negative skewness in it's return distribution. This indicates that SAKHTISUG is very risky for short-term investment and can significantly underperform for long durations.

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

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

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter