MOHIT INDUSTRIES LTD

10.0 -0.1 (-0.99%) Buy

Search for alternative investments is on for MOHITIND investors as it performed worse than the broader market

14 min read

MOHITIND delivered lacklustre performance today. On a longer term basis, investors in MOHIT INDUSTRIES LTD made -0.09% per day. Friday's performance of -0.99% was a significant underperformance compared to it's daily average.

[Themes containing MOHITIND]

Buy-and-Hold investors in MOHITIND experienced a maximum drawdown of -23.98% over the last three months. It returned +36.99% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +35.87%.

Trend

MOHITIND has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, MOHITIND underperformed the NIFTY-50 index on 56% days.

During the last three months MOHITIND delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.86%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.0%) was on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 9 Nov, 2018. The bullish trend returned +40.24% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 21 Nov, 2018. This bearish trend lost -7.44% of investor capital.

MOHITIND had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of MOHITIND and NIFTY-50 index were the same. MOHITIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -43.26% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MOHITIND had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +37.15%. It is interesting to note that both MOHITIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Great businesses produce great results

MOHITIND 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 MOHITIND's volatility from 22 Oct, 2018 to 31 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 MOHITIND has significant negative skewness in it's return distribution. This indicates that MOHITIND is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in MOHITIND), three instruments that have performed similar to MOHITIND are JBFIND, SATHAISPAT and SHRIRAMEPC. They must all be evaluated as alternative investment options and for diversification.

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