3135.75 -7.43 (-0.24%) Buy

BRITANNIA investors re-evaluating their investment strategy

13 min read

BRITANNIA INDUSTRIES LTD underperformed broader market on Friday. It delivered -0.24% to close at 3135.75. It is currently trading +39% above it's 52 week low of 2252.73 and is down only -9% from it's 52 week high.

[Themes containing BRITANNIA]

Buy-and-Hold investors in BRITANNIA experienced a maximum drawdown of -12.48% over the last three months. It increased by +4.15% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +9.75%.


BRITANNIA has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 21 Jun, 2016 to 23 Aug, 2018. Over the last 2 years 11 months and 13 days, BRITANNIA outperformed the NIFTY-50 index on 51% days.

During the last three months BRITANNIA was mostly profitable and delivered on average +0.09% per day. It's best return during this period (of +4.53%) was on Friday, 30 Nov, 2018. While it's worst loss in the same period (of -3.45%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 26 Oct, 2018 and went on till 31 Oct, 2018. This bullish trend returned +6.19% to investors.

The last 12 months saw BRITANNIA's investors making profits in 8 months and incurring losses in 4 months. During the last year, BRITANNIA delivered profits in more months than NIFTY-50 index. BRITANNIA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.56% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BRITANNIA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Apr 2018 to Aug 2018) during which period it delivered +28.73%.

Happiness lies in the joy of achievement and the thrill of creative effort.
-- Franklin D. Roosevelt

BRITANNIA 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 BRITANNIA's volatility from 25 Sep, 2018 to 29 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that BRITANNIA has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in BRITANNIA derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in BRITANNIA you may find it interesting to know that VINATIORGA, IGARASHI and RESPONIND are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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