6403.3 -5.19 (-0.08%) Buy

SANOFI investors check their stop-losses as it underperforms

13 min read

SANOFI INDIA LIMITED ranked worse than it's peers on Wednesday. It lost -0.08% to close at 6403.3. It is currently trading +38% above it's 52 week low of 4606.9 and is down only -3% from it's 52 week high.

[Themes containing SANOFI]

Buy-and-Hold investors in SANOFI experienced a maximum drawdown of -4.16% over the last three months. It gained +12.29% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


SANOFI has been outperforming the NIFTY-50 index in recent time. SANOFI is currently at it's peak outperformance to the NIFTY-50 index and can be considered for investment. Over the last 3 years and 1 month, SANOFI outperformed the NIFTY-50 index on 50% days. Which indicates that on days SANOFI outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

SANOFI was profitable on 58% days in the last three months. During this time, it delivered on average +0.19% per day. It delivered it's best daily return of +3.06%, during this period, on Friday, 9 Nov, 2018. There was initially a bearish trend during this period which started on 21 Nov, 2018 and went on till 28 Nov, 2018. The trend delivered -2.28% losses to investors. This was followed by a bullish trend that started on 8 Jan, 2019 and ended on 21 Jan, 2019. This bullish trend delivered +5.21% to investors.

SANOFI had 9 profitable and 3 loss making months over the last year. SANOFI was profitable in more months than NIFTY-50 index. SANOFI significantly outperformed NIFTY-50 index in Jul 2018, when it returned +15.34% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SANOFI had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from May 2018 to Aug 2018) during which period it delivered +29.67%.

The stock market is a discounter of all known information.
-- Kenneth Fisher

SANOFI 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 SANOFI's volatility from 29 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 SANOFI has significant negative skewness in it's return distribution. This indicates that SANOFI is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SANOFI), three instruments that deserve special mention are ~CHEMICALS, BAJFINANCE and BRITANNIA. They have all outperformed the market and must be closely watched for investment opportunities.

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