433.5 -4.01 (-0.93%) Sell

Don't go shopping for EMAMILTD now, it is underperforming the market

13 min read

EMAMILTD underperformed broader market today. On a longer term basis, investors in EMAMI LIMITED made +0.07% per day. Friday's performance of -0.93% was a underperformance compared to it's daily average.

[Themes containing EMAMILTD]

EMAMILTD showed a flat trend over the last 3 months. During this period EMAMILTD delivered +0.25% and saw a maximum drawdown of -12.89%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in EMAMILTD till volatility reduces and a clear trend emerges.


EMAMILTD has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 3 Nov, 2016 to 28 Dec, 2018. Over the last 3 years and 1 month, EMAMILTD underperformed the NIFTY-50 index on 52% days.

EMAMILTD was profitable on 50% days in the last three months. During this time, it delivered on average +0.02% per day. It delivered it's best daily return of +6.41%, during this period, on Friday, 2 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +9.77%) started on 12 Nov, 2018 and went on till 16 Nov, 2018 while the bearish trend (which returned -8.81%) started on 18 Dec, 2018 and went on till 24 Dec, 2018.

The last 12 months saw EMAMILTD's investors making profits in 5 months and incurring losses in 7 months. During the last year, EMAMILTD and NIFTY-50 index had the same number of profitable months. EMAMILTD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -20.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. EMAMILTD had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -37.65%. It is interesting to note that both EMAMILTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"There is a huge amount of freedom that is derived from not fighting the market.

EMAMILTD 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 EMAMILTD's volatility from 23 Oct, 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 EMAMILTD has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

Based on your interest in EMAMILTD you may find it interesting to know that IGARASHI, TIDEWATER and IEX are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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