SANDESH LTD underperformed broader market today. It delivered -0.75% to close at 741.3. It's recent 5 day performance has been -1.09%, -2.16%, -2.2%, -2.62% and -2.2%.
SANDESH showed a strong bearish trend over the last 3 months. During this period SANDESH delivered -11.96% and saw a maximum drawdown of -16.25%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SANDESH till volatility reduces and a clear trend emerges.
SANDESH has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 29 Dec, 2017 to 20 Dec, 2018. Over the last 3 years and 1 month, SANDESH underperformed the NIFTY-50 index on 56% days.
During the last three months SANDESH was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +20.0%) was on Wednesday, 9 Jan, 2019. While it's worst loss in the same period (of -3.32%) was on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 16 Jan, 2019 and ended on 23 Jan, 2019. This bearish trend lost -11.02% of investor capital.
The last 12 months saw SANDESH's investors making profits in 2 months and incurring losses in 10 months. SANDESH was less consistent in delivering monthly returs than NIFTY-50 index. SANDESH was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -11.99% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SANDESH had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered -21.97%. It is interesting to note that both SANDESH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"Cash combined with courage in a time of crisis is priceless.
SANDESH 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 SANDESH's volatility from 7 Jan, 2019 to 10 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 SANDESH has significant negative skewness in it's return distribution. This indicates that SANDESH is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SANDESH. Therefore, NIFTY-50 must receive a lower allocation than SANDESH in your portfolio. NIFTY-50 index usually has shorter drawdown period than SANDESH.
Based on your interest in SANDESH you may find it interesting to know that NIITTECH has shown remarkable performance this year and deserves to be on every investors' watchlist.
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