KESAR ENTERPRISES LTD.

28.5 -0.49 (-1.72%) Sell

Don't buy KESARENT now, it is an investor's nightmare

13 min read

KESARENT is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in KESAR ENTERPRISES LTD. made +0.19% per day. Thursday's performance of -1.72% was a significant underperformance compared to it's daily average.

[Themes containing KESARENT]

KESARENT showed a strong down trend over the last 3 months. During this period KESARENT returned -12.17% and saw a maximum drawdown of -19.11%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in KESARENT till volatility reduces and a clear trend emerges.

Trend

KESARENT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 29 May, 2017. Over the last 3 years and 1 month, KESARENT underperformed the NIFTY-50 index on 59% days.

KESARENT returned losses on 56% days in the last three months. During this time, it delivered on average -0.18% per day. It delivered it's best daily return of +5.0%, during this period, on Monday, 12 Nov, 2018. There was initially a bearish trend during this period which started on 13 Nov, 2018 and went on till 19 Nov, 2018. The trend delivered -13.7% losses to investors. This was followed by a bullish trend that started on 2 Jan, 2019 and ended on 7 Jan, 2019. This bullish trend delivered +8.65% to investors.

On monthly basis, KESARENT delivered losses in more months over the last year, than profits. KESARENT delivered profits less regularly than NIFTY-50 index. KESARENT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -25.5% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KESARENT had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -62.28%. It is interesting to note that both KESARENT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money often costs too much.
-- Ralph Waldo Emerson

KESARENT 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 surge in KESARENT's volatility from 22 Oct, 2018 to 30 Oct, 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 KESARENT has significant negative skewness in it's return distribution. This indicates that KESARENT is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in KESARENT you may find it interesting to know that CUB and NIITTECH have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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