245.35 -11.58 (-4.72%) Sell

Waiting to invest in SUBROS? Avoid at the moment as it delivered massive losses

13 min read

SUBROS LIMITED delivered massive losses on Tuesday. It delivered -4.72% to close at 245.35. It is currently trading -38% below it's 52 week high of 396.05.

[Themes containing SUBROS]

SUBROS showed a bearish trend over the last 3 months. During this period SUBROS delivered -7.73% and saw a maximum drawdown of -14.44%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SUBROS till volatility reduces and a clear trend emerges.


SUBROS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 23 Jun, 2016 to 9 Jan, 2018. Over the last 3 years and 1 month, SUBROS outperformed the NIFTY-50 index on 45% days. Which indicates that on days SUBROS 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 SUBROS was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +4.76%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.72%) was on Tuesday, 22 Jan, 2019. The longest stort-term trend during this period was 4 losing days, which started on 3 Dec, 2018 and ended on 6 Dec, 2018. This bearish trend lost -6.0% of investor capital.

The last 12 months saw SUBROS's investors making profits in 4 months and incurring losses in 8 months. SUBROS was less consistent in delivering monthly returs than NIFTY-50 index. SUBROS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -13.17% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SUBROS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -17.25%. It is interesting to note that both SUBROS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.
-- Robert J. Shiller

SUBROS 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 fall in SUBROS's volatility from 26 Oct, 2018 to 2 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 SUBROS has significant negative skewness in it's return distribution. This indicates that SUBROS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SUBROS), IGARASHI is a small cap that deserves to be closely tracked for investment opportunities.

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