EVEREST INDUSTRIES LTD

461.0 -14.81 (-3.21%) Sell

EVERESTIND is a falling knife, continues to bleed every investor trying to catch it

13 min read

EVEREST INDUSTRIES LTD has destroyed investor wealth on Wednesday. It delivered -3.21% to close at 461.0. It is currently trading -23% below it's 52 week high of 603.55.

[Themes containing EVERESTIND]

EVERESTIND showed a bearish trend over the last 3 months. During this period EVERESTIND delivered -3.06% and saw a maximum drawdown of -11.53%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in EVERESTIND till volatility reduces and a clear trend emerges.

Trend

EVERESTIND has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 21 Feb, 2017 to 9 Jan, 2018. Over the last 3 years and 1 month, EVERESTIND outperformed the NIFTY-50 index on 46% days. Which indicates that on days EVERESTIND outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

EVERESTIND returned losses on 61% days in the last three months. During this time, it delivered on average -0.04% per day. It delivered it's best daily return of +5.26%, during this period, on Wednesday, 12 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 16 Jan, 2019 and ended on 23 Jan, 2019. This bearish trend lost -9.16% of investor capital.

The last 12 months saw EVERESTIND's investors making profits in 5 months and incurring losses in 7 months. During the last year, EVERESTIND delivered profits in more months than NIFTY-50 index. EVERESTIND significantly outperformed NIFTY-50 index in Jul 2018, when it returned +22.62% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. EVERESTIND and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both EVERESTIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investment philosophy is the clear understanding that by owning shares of stocks he owns businesses, not pieces of paper.
-- Warren Edward Buffett

EVERESTIND 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 EVERESTIND's volatility from 2 Nov, 2018 to 7 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 EVERESTIND has significant negative skewness in it's return distribution. This indicates that EVERESTIND is very risky for short-term investment and can significantly underperform for long durations.

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

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

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