SUMEET IND LIMITED

3.85 +0.05 (+1.32%) Sell

SUMEETINDS does a dead cat bounce, it's still too early to buy into it

13 min read

SUMEET IND LIMITED delivered stellar performance on Tuesday. It gained +1.32% to close at 3.85. On a day when the overall market breadth was 70%, it closed higher than 21% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing SUMEETINDS]

SUMEETINDS showed a strong down trend over the last 3 months. During this period SUMEETINDS returned -25.24% and saw a maximum drawdown of -31.07%. There were 4 short signals during this period that returned a cumulative of +6.94% to investors.

Trend

SUMEETINDS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 28 Oct, 2016. Over the last 3 years and 1 month, SUMEETINDS underperformed the NIFTY-50 index on 54% days.

SUMEETINDS returned losses on 64% days in the last three months. During this time, it delivered on average -0.42% per day. It delivered it's worst daily return of -4.85%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 4 Dec, 2018 and went on till 11 Dec, 2018. The trend delivered -24.02% losses to investors. This was followed by a bullish trend that started on 17 Dec, 2018 and ended on 20 Dec, 2018. This bullish trend delivered +13.41% to investors.

On monthly basis, SUMEETINDS delivered losses in more months over the last year, than profits. SUMEETINDS delivered profits less regularly than NIFTY-50 index. SUMEETINDS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -39.13% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SUMEETINDS had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered -97.49%. It is interesting to note that both SUMEETINDS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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SUMEETINDS 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 SUMEETINDS's volatility from 23 Oct, 2018 to 6 Dec, 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 SUMEETINDS has significant negative skewness in it's return distribution. This indicates that SUMEETINDS is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SUMEETINDS you may find it interesting to know that VINATIORGA is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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