122.55 -0.75 (-0.61%) Buy

Don't go shopping for GREAVESCOT now, it is underperforming the market

13 min read

GREAVESCOT ranked worse than it's peers today. On a longer term basis, investors in GREAVES COTTON LTD. made +0.05% per day. Friday's performance of -0.61% was a underperformance compared to it's daily average.

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GREAVESCOT showed a flat trend over the last 3 months. During this period GREAVESCOT delivered +0.16% and saw a maximum drawdown of -12.41%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in GREAVESCOT till volatility reduces and a clear trend emerges.


GREAVESCOT has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 31 Mar, 2017 to 19 Dec, 2017. Over the last 3 years and 1 month, GREAVESCOT underperformed the NIFTY-50 index on 53% days.

GREAVESCOT returned losses on 51% days in the last three months. During this time, it delivered on average +0.02% per day. It delivered it's worst daily return of -5.85%, during this period, on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 30 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +7.06% to investors.

The last 12 months saw GREAVESCOT's investors making profits in 7 months and incurring losses in 5 months. During the last year, GREAVESCOT delivered profits in more months than NIFTY-50 index. GREAVESCOT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -15.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GREAVESCOT 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 +34.11%. It is interesting to note that both GREAVESCOT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The way to become rich is to put all your eggs in one basket and then watch that basket.

GREAVESCOT 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 GREAVESCOT's volatility from 24 Oct, 2018 to 10 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 GREAVESCOT has significant negative skewness in it's return distribution. This indicates that GREAVESCOT is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in GREAVESCOT you may find it interesting to know that HATSUN, LTI and CUB are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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