MUNJAL AUTO IND. LTD.

56.05 +0.3 (+0.54%) Sell

Looking to invest in MUNJALAU? Consider it, because it managed to outperform the broader market

13 min read

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%.

[Themes containing MUNJALAU]

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.

Trend

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.

"There is a huge amount of freedom that is derived from not fighting the market.

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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