442.35 -6.36 (-1.44%) Sell

KIRIINDUS investors incur serious losses

13 min read

KIRI INDUSTRIES LIMITED significantly underperformed on Friday. It delivered -1.44% to close at 442.35. On a day when the overall market breadth was 71%, it closed higher than 86% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing KIRIINDUS]

Buy-and-Hold investors in KIRIINDUS experienced a maximum drawdown of -17.14% over the last three months. It delivered +8.99% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


KIRIINDUS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 5 Feb, 2016 to 15 Jan, 2018. Over the last 3 years and 1 month, KIRIINDUS outperformed the NIFTY-50 index on 46% days. Which indicates that on days KIRIINDUS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months KIRIINDUS delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.99%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.11%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 26 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +21.99% to investors.

The last 12 months saw KIRIINDUS's investors making profits in 4 months and incurring losses in 8 months. KIRIINDUS was less consistent in delivering monthly returs than NIFTY-50 index. KIRIINDUS significantly outperformed NIFTY-50 index in May 2018, when it returned +31.38% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. KIRIINDUS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -35.16%. It is interesting to note that both KIRIINDUS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Thirty to 40 years ago, most financial decisions were fairly simple.
-- Scott Cook

KIRIINDUS 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 KIRIINDUS's volatility from 13 Nov, 2018 to 7 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 KIRIINDUS has significant negative skewness in it's return distribution. This indicates that KIRIINDUS is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in KIRIINDUS you may find it interesting to know that NIFTY50-DIV-POINT and TIDEWATER are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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