366.75 +3.69 (+1.01%) Buy

GNFC continues to mint money for it's investors

15 min read

GUJ NAR VAL FER & CHEM L was among the best performers on Friday. It returned +1.01% to close at 366.75. It is currently trading -31% below it's 52 week high of 532.9.

[Themes containing GNFC]

GNFC is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +6.64%) for GNFC's investors than trading long signals.


GNFC has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, GNFC outperformed the NIFTY-50 index on 50% days. Which indicates that on days GNFC outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months GNFC was mostly profitable and delivered on average +0.13% per day. It's best return during this period (of +12.8%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -3.76%) was on Friday, 21 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +17.43% to investors. This was followed by a bearish trend that started on 21 Dec, 2018 and ended on 27 Dec, 2018. This bearish trend lost -6.74% of investor capital.

On monthly basis, GNFC delivered losses in more months over the last year, than profits. GNFC delivered profits less regularly than NIFTY-50 index. GNFC significantly outperformed NIFTY-50 index in Apr 2018, when it returned +23.2% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GNFC 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 -15.48%. It is interesting to note that both GNFC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
-- Warren Edward Buffett

GNFC is becoming more 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 GNFC's volatility from 23 Oct, 2018 to 17 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 GNFC has significant negative skewness in it's return distribution. This indicates that GNFC is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GNFC), if you are evaluating GNFC as an investment candidate, then you should read about VARDHACRLC which has delivered similar performance and can help diversify your portfolio.

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