177.0 -0.6 (-0.34%) Sell

Want to invest in LUMAXTECH? Wait as it ranked worse than it's peers

13 min read

LUMAX AUTO TECH LTD ranked worse than it's peers today. It returned -0.34% to close at 177.0. It's recent 5 day performance has been +2.48%, -3.05%, +3.86%, -1.63% and +4.54%.

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LUMAXTECH showed a up trend over the last 3 months. During this period LUMAXTECH grew by +9.02% and saw a maximum drawdown of -20.89%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in LUMAXTECH till volatility reduces and a clear trend emerges.


LUMAXTECH has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Dec, 2018. Over the last 3 years and 1 month, LUMAXTECH outperformed the NIFTY-50 index on 46% days. Which indicates that on days LUMAXTECH 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 LUMAXTECH delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.84%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -5.65%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 21 Nov, 2018 and went on till 28 Nov, 2018. The bullish trend returned +10.84% to investors. This was followed by a bearish trend that started on 18 Dec, 2018 and ended on 28 Dec, 2018. This bearish trend lost -7.31% of investor capital.

On monthly basis, LUMAXTECH delivered profits and losses in equal number of months. LUMAXTECH delivered profits in more months than NIFTY-50 index. LUMAXTECH significantly outperformed NIFTY-50 index in Aug 2018, when it returned +30.68% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LUMAXTECH and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both LUMAXTECH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The individual investor should act consistently as an investor and not as a speculator.
-- Ben Graham

LUMAXTECH 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 LUMAXTECH's volatility from 11 Dec, 2018 to 10 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 LUMAXTECH has significant negative skewness in it's return distribution. This indicates that LUMAXTECH is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in LUMAXTECH), three large cap instruments that deserve special mention are BAJFINANCE, INFY and TORNTPHARM. They have all outperformed the market and must be closely watched for investment opportunities.

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