81.0 -1.13 (-1.4%) Buy

EROSMEDIA investors check their stop-losses as it underperforms

13 min read

EROS INTL MEDIA LTD delivered massive losses on Friday. It returned -1.4% to close at 81.0. It is currently trading -67% below it's 52 week high of 246.45.

[Themes containing EROSMEDIA]

EROSMEDIA is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +7.36%) for EROSMEDIA's investors than trading long signals.


EROSMEDIA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 28 Mar, 2017. Over the last 3 years and 1 month, EROSMEDIA underperformed the NIFTY-50 index on 56% days.

EROSMEDIA returned losses on 59% days in the last three months. During this time, it delivered on average +0.17% per day. It delivered it's best daily return of +9.97%, during this period, on Friday, 2 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 6 Nov, 2018. The bullish trend returned +45.88% to investors. This was followed by a bearish trend that started on 20 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -14.41% of investor capital.

On monthly basis, EROSMEDIA delivered losses in more months over the last year, than profits. EROSMEDIA delivered profits less regularly than NIFTY-50 index. EROSMEDIA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -34.75% compared to -6.42% returned by NIFTY-50 index in Sep 2018. EROSMEDIA and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both EROSMEDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"When you're building a company, you need to continually strengthen every component - finance, strategic partnerships, executive team, and relationships with every last constituency.

EROSMEDIA is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in EROSMEDIA's volatility from 19 Oct, 2018 to 15 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 EROSMEDIA has significant negative skewness in it's return distribution. This indicates that EROSMEDIA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in EROSMEDIA), BAJFINANCE has performed really well and deserves to be closely tracked for investment opportunities.

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