Don't cash in on BEDMUTHA now, it outperformed most of it's peers
22 Jan, 201913 min read
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BEDMUTHA INDUST LTD outperformed the broader market today. It increased by +3.35% to close at 23.15. It's recent 5 day performance has been +2.99%, -1.58%, -1.34%, +1.59% and -0.23%.
BEDMUTHA showed a strong bullish trend over the last 3 months. During this period BEDMUTHA increased by +12.93% and saw a maximum drawdown of -20.96%. There were 3 long signals during this period that returned a cumulative of +2.76% to investors.
BEDMUTHA has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 19 May, 2017 to 28 Aug, 2018. Over the last 3 years and 1 month, BEDMUTHA underperformed the NIFTY-50 index on 55% days.
During the last three months BEDMUTHA delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.95%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -4.99%) was on Thursday, 29 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 20 Nov, 2018 and went on till 28 Nov, 2018. This bullish trend returned +28.84% to investors.
The last 12 months saw BEDMUTHA's investors making profits in 6 months and incurring losses in 6 months. During the last year, BEDMUTHA delivered profits in more months than NIFTY-50 index. BEDMUTHA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -27.35% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BEDMUTHA and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both BEDMUTHA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I have probably purchased fifty 'hot tips' in my career, maybe even more. When I put them all together, I know I am a net loser.
-- Charles Schwab
BEDMUTHA 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 surge in BEDMUTHA's volatility from 23 Oct, 2018 to 17 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 BEDMUTHA has significant negative skewness in it's return distribution. This indicates that BEDMUTHA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than BEDMUTHA. Therefore, NIFTY-50 must receive a lower allocation than BEDMUTHA in your portfolio. NIFTY-50 index usually has shorter drawdown period than BEDMUTHA.
On a general note (since you are interested in BEDMUTHA), two mid cap instruments that deserve special mention are BATAINDIA and HATSUN. They have significantly outperformed the overall market.
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