SREE RAYALSEEMA HHP LTD.

154.95 -2.7 (-1.74%) Buy

Waiting to invest in SRHHYPOLTD? Look for alternatives because it trailed the broader market

13 min read

SREE RAYALSEEMA HHP LTD. was among the worst performers on Friday. It delivered -1.74% to close at 154.95. On a day when the overall market breadth was 71%, it closed higher than 93% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

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SRHHYPOLTD showed a bullish trend over the last 3 months. During this period SRHHYPOLTD delivered +7.42% and saw a maximum drawdown of -18.48%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SRHHYPOLTD till volatility reduces and a clear trend emerges.

Trend

SRHHYPOLTD has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 11 Feb, 2016 to 23 Oct, 2017. Over the last 3 years and 1 month, SRHHYPOLTD outperformed the NIFTY-50 index on 47% days. Which indicates that on days SRHHYPOLTD outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months SRHHYPOLTD delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.98%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -6.37%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 16 Nov, 2018 and ended on 27 Nov, 2018. This bearish trend lost -9.4% of investor capital.

The last 12 months saw SRHHYPOLTD's investors making profits in 5 months and incurring losses in 7 months. During the last year, SRHHYPOLTD and NIFTY-50 index had the same number of profitable months. SRHHYPOLTD significantly outperformed NIFTY-50 index in Nov 2018, when it returned +13.58% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SRHHYPOLTD had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered +26.25%. It is interesting to note that both SRHHYPOLTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

SRHHYPOLTD 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 SRHHYPOLTD's volatility from 22 Oct, 2018 to 3 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 SRHHYPOLTD has significant negative skewness in it's return distribution. This indicates that SRHHYPOLTD is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SRHHYPOLTD you may find it interesting to know that NIITTECH is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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