MUNJAL AUTO IND. LTD. managed to outperform the broader market today. It surged by +0.54% to close at 56.05. It's recent 5 day performance has been -1.5%, -0.79%, -1.55%, -1.02% and -1.51%.
MUNJALAU showed a bullish trend over the last 3 months. During this period MUNJALAU surged by +7.27% and saw a maximum drawdown of -14.58%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in MUNJALAU till volatility reduces and a clear trend emerges.
MUNJALAU has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 Jul, 2016 to 5 Jan, 2018. Over the last 3 years and 1 month, MUNJALAU underperformed the NIFTY-50 index on 56% days.
MUNJALAU returned losses on 59% days in the last three months. During this time, it delivered on average +0.17% per day. It delivered it's best daily return of +19.67%, during this period, on Wednesday, 31 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 16 Jan, 2019 and ended on 22 Jan, 2019. This bearish trend lost -6.37% of investor capital.
During the last year MUNJALAU had 5 profitable months and 7 loss making months. MUNJALAU returned profits in more months than NIFTY-50 index. MUNJALAU significantly outperformed NIFTY-50 index in Oct 2018, when it returned +17.5% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MUNJALAU and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both MUNJALAU and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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MUNJALAU is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in MUNJALAU's volatility from 31 Oct, 2018 to 23 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 MUNJALAU has significant negative skewness in it's return distribution. This indicates that MUNJALAU is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than MUNJALAU. Therefore, NIFTY-50 must receive a lower allocation than MUNJALAU in your portfolio. NIFTY-50 index usually has shorter drawdown period than MUNJALAU.
Based on your interest in MUNJALAU you may find it interesting to know that ~HOMEAPPLIANCES, NIFTY50-DIV-POINT and SRIPIPES are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.
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