42.6 -0.2 (-0.47%) Sell

SHIVAMAUTO continues its fall as more investors loose confidence

13 min read

SHIVAMAUTO underperformed broader market today. On a longer term basis, investors in SHIVAM AUTO.LTD made +0.15% per day. Friday's performance of -0.47% was a underperformance compared to it's daily average.

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SHIVAMAUTO showed a flat trend over the last 3 months. During this period SHIVAMAUTO delivered 0.0% and saw a maximum drawdown of -15.29%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SHIVAMAUTO till volatility reduces and a clear trend emerges.


SHIVAMAUTO has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 23 Oct, 2017 to 18 Jan, 2019. One must note that SHIVAMAUTO is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, SHIVAMAUTO underperformed the NIFTY-50 index on 58% days.

During the last three months SHIVAMAUTO delivered losses on 60% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.78%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.94%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 12 losing days, which started on 6 Nov, 2018 and ended on 22 Nov, 2018. This bearish trend lost -16.0% of investor capital.

During the last year SHIVAMAUTO had 4 profitable months and 8 loss making months. SHIVAMAUTO returned profits in fewer months than NIFTY-50 index. SHIVAMAUTO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -24.19% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SHIVAMAUTO had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -45.33%. It is interesting to note that both SHIVAMAUTO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Making money from enforcing patents is no more wrong than investing in preferred stock.
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SHIVAMAUTO 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 SHIVAMAUTO's volatility from 22 Oct, 2018 to 18 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 SHIVAMAUTO has significant negative skewness in it's return distribution. This indicates that SHIVAMAUTO is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SHIVAMAUTO you may find it interesting to know that VINATIORGA and IGARASHI are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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