SINTEX INDUSTRIES LTD was among the worst performers on Friday. It delivered -2.2% to close at 11.1. On a day when the overall market breadth was 71%, it closed higher than 15% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
Buy-and-Hold investors in SINTEX experienced a maximum drawdown of -15.33% over the last three months. It delivered -5.53% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.
SINTEX has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 6 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, SINTEX underperformed the NIFTY-50 index on 52% days.
During the last three months SINTEX was mostly loss making and delivered on average -0.07% per day. It's best return during this period (of +8.62%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -4.76%) was on Thursday, 29 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 11 Dec, 2018 and went on till 20 Dec, 2018. This bullish trend returned +8.76% to investors.
The last 12 months saw SINTEX's investors making profits in 2 months and incurring losses in 10 months. SINTEX was less consistent in delivering monthly returs than NIFTY-50 index. SINTEX was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.29% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SINTEX had a longer winning streak of losing months than NIFTY-50 index. It went down in 8 straight months (from Feb 2018 to Sep 2018) during which period it delivered -70.54%. It is interesting to note that both SINTEX and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Traditionally, the sample is always better than the stock you deliver to the store.
-- Calvin Klein
SINTEX is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in SINTEX's volatility from 29 Nov, 2018 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 SINTEX has positive skewness in it's return distribution. This indicates that investors can expect SINTEX to make attempts to recover from drawdowns quickly. Which makes SINTEX a good candidate for momentum based trading on short-term bullish trends or counter-trends.
NIFTY-50 index has more chance of extreme outcomes than SINTEX. Therefore, NIFTY-50 must receive a lower allocation than SINTEX in your portfolio. SINTEX usually has shorter drawdown period than the NIFTY-50 index.
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