194.8 -4.3 (-2.21%) Buy

Search for alternative investments is on for BALMLAWRIE investors as it underperforms broader market

13 min read

BALMER LAWRIE & CO LTD was among the worst performers today. It lost -2.21% to close at 194.8. During the last week it lost -2.16% and saw a maximum drawdown of -2.6% before bouncing back.

[Themes containing BALMLAWRIE]

Buy-and-Hold investors in BALMLAWRIE experienced a maximum drawdown of -11.99% over the last three months. It gained +4.96% during this 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.


BALMLAWRIE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 12 Dec, 2016. Over the last 3 years and 1 month, BALMLAWRIE outperformed the NIFTY-50 index on 46% days. Which indicates that on days BALMLAWRIE outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

BALMLAWRIE returned losses on 56% days in the last three months. During this time, it delivered on average +0.1% per day. It delivered it's best daily return of +12.89%, during this period, on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 30 Nov, 2018 and went on till 6 Dec, 2018. The trend delivered -4.81% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 17 Dec, 2018. This bullish trend delivered +15.82% to investors.

BALMLAWRIE had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of BALMLAWRIE and NIFTY-50 index were the same. BALMLAWRIE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -14.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BALMLAWRIE had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -10.47%. It is interesting to note that both BALMLAWRIE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
-- William A. Ward

BALMLAWRIE 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 fall in BALMLAWRIE's volatility from 19 Oct, 2018 to 13 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 BALMLAWRIE has significant negative skewness in it's return distribution. This indicates that BALMLAWRIE is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in BALMLAWRIE), three mid cap instruments that deserve special mention are LTI, CUB and LTTS. They have all outperformed the market and must be closely watched for investment opportunities.

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