555.0 -1.25 (-0.22%) Sell

BIRLACORPN investors doing a reality check

13 min read

BIRLA CORPORATION LTD delivered lacklustre performance today. It returned -0.22% to close at 555.0. During the last week it grew by +1.76% and saw a maximum drawdown of -3.52% before bouncing back.

[Themes containing BIRLACORPN]

Buy-and-Hold investors in BIRLACORPN experienced a maximum drawdown of -18.78% over the last three months. It returned -3.32% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


BIRLACORPN has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2018. Over the last 3 years and 1 month, BIRLACORPN underperformed the NIFTY-50 index on 52% days.

During the last three months BIRLACORPN was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +6.7%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -2.99%) was on Tuesday, 20 Nov, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 5 Nov, 2018. The bullish trend returned +7.34% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -9.52% of investor capital.

On monthly basis, BIRLACORPN delivered losses in more months over the last year, than profits. BIRLACORPN delivered profits less regularly than NIFTY-50 index. BIRLACORPN was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -20.77% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BIRLACORPN had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -32.7%.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

BIRLACORPN 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 BIRLACORPN's volatility from 19 Oct, 2018 to 11 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 BIRLACORPN has significant negative skewness in it's return distribution. This indicates that BIRLACORPN is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in BIRLACORPN), two mid cap instruments that deserve special mention are LTI and HATSUN. They have significantly outperformed the overall market.

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