62.8 -1.18 (-1.88%) Buy

Want to invest in SANGAMIND? Wait as it underperformed broader market

13 min read

SANGAMIND has destroyed investor wealth today. On a longer term basis, investors in SANGAM (INDIA) LTD made +0.07% per day. Tuesday's performance of -1.88% was a significant underperformance compared to it's daily average.

[Themes containing SANGAMIND]

SANGAMIND showed a down trend over the last 3 months. During this period SANGAMIND returned -3.46% and saw a maximum drawdown of -24.7%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SANGAMIND till volatility reduces and a clear trend emerges.


SANGAMIND has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, SANGAMIND underperformed the NIFTY-50 index on 58% days.

SANGAMIND returned losses on 70% days in the last three months. During this time, it delivered on average +0.01% per day. It delivered it's best daily return of +16.57%, during this period, on Thursday, 1 Nov, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +24.28% to investors. This was followed by a bearish trend that started on 2 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -22.06% of investor capital.

On monthly basis, SANGAMIND delivered losses in more months over the last year, than profits. SANGAMIND delivered profits less regularly than NIFTY-50 index. SANGAMIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -26.45% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SANGAMIND and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both SANGAMIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
-- Warren Buffett

SANGAMIND 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 SANGAMIND's volatility from 1 Nov, 2018 to 31 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 SANGAMIND has significant negative skewness in it's return distribution. This indicates that SANGAMIND is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SANGAMIND you may find it interesting to know that LTTS, BATAINDIA and CUB are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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