4.85 -0.15 (-3.0%) Sell

Doubt in the minds of JVLAGRO investors as it destroyed investor wealth

13 min read

JVL AGRO INDUSTRIES LTD has destroyed investor wealth on Tuesday. It fell by -3.0% to close at 4.85. On a day when the overall market breadth was 70%, it closed higher than 20% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing JVLAGRO]

JVLAGRO is currently in a bearish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +19.75%) for JVLAGRO's investors than shorting it.


JVLAGRO has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 15 Jan, 2018 to 16 Oct, 2018. Over the last 3 years and 1 month, JVLAGRO underperformed the NIFTY-50 index on 57% days.

JVLAGRO returned losses on 51% days in the last three months. During this time, it delivered on average +0.35% per day. It delivered it's worst daily return of -5.0%, during this period, on Thursday, 22 Nov, 2018. The longest stort-term trend during this period was 14 profitable days, which started on 30 Oct, 2018 and went on till 19 Nov, 2018. This bullish trend returned +64.46% to investors.

During the last year JVLAGRO had 4 profitable months and 8 loss making months. JVLAGRO returned profits in fewer months than NIFTY-50 index. JVLAGRO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -39.86% compared to -6.11% returned by NIFTY-50 index in Sep 2018. JVLAGRO had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -107.85%. It is interesting to note that both JVLAGRO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this.
-- Dave Ramsey

JVLAGRO 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 JVLAGRO's volatility from 23 Oct, 2018 to 28 Nov, 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 JVLAGRO has positive skewness in it's return distribution. This indicates that investors can expect JVLAGRO to make attempts to recover from drawdowns quickly. Which makes JVLAGRO a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in JVLAGRO), three instruments that deserve special mention are HATSUN, RESPONIND and CUB. They have all outperformed the market and must be closely watched for investment opportunities.

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