4758.7 -207.67 (-4.36%) Sell

BHARATRAS is a falling knife, continues to bleed every investor trying to catch it

13 min read

BHARAT RASAYAN LTD was among the worst performers on Friday. It delivered -4.36% to close at 4758.7. It is currently trading -40% below it's 52 week high of 8050.0.

[Themes containing BHARATRAS]

Buy-and-Hold investors in BHARATRAS experienced a maximum drawdown of -20.69% over the last three months. It delivered -15.6% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +15.6% for investors.


BHARATRAS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 31 Mar, 2016 to 9 Aug, 2018. Over the last 3 years and 1 month, BHARATRAS outperformed the NIFTY-50 index on 47% days. Which indicates that on days BHARATRAS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

BHARATRAS returned losses on 65% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's best daily return of +6.53%, during this period, on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 18 Dec, 2018 and ended on 26 Dec, 2018. This bearish trend lost -9.02% of investor capital.

The last 12 months saw BHARATRAS's investors making profits in 6 months and incurring losses in 6 months. During the last year, BHARATRAS delivered profits in more months than NIFTY-50 index. BHARATRAS significantly outperformed NIFTY-50 index in Apr 2018, when it returned +32.28% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. BHARATRAS had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +33.66%. It is interesting to note that both BHARATRAS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
-- Robert Kiyosaki

BHARATRAS is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in BHARATRAS's volatility from 22 Oct, 2018 to 14 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 BHARATRAS has significant negative skewness in it's return distribution. This indicates that BHARATRAS is very risky for short-term investment and can significantly underperform for long durations.

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

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

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