85.6 -1.38 (-1.61%) Sell

Are you evaluating investing in GUFICBIO? Avoid as it significantly underperformed

13 min read

GUFIC BIOSCIENCES LTD. significantly underperformed on Wednesday. It lost -1.61% to close at 85.6. On a day when the overall market breadth was 70%, it closed higher than 92% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing GUFICBIO]

GUFICBIO showed a down trend over the last 3 months. During this period GUFICBIO lost -8.64% and saw a maximum drawdown of -18.25%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in GUFICBIO till volatility reduces and a clear trend emerges.


GUFICBIO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 9 May, 2018. Over the last 3 years and 1 month, GUFICBIO outperformed the NIFTY-50 index on 43% days. Which indicates that on days GUFICBIO outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

GUFICBIO returned losses on 64% days in the last three months. During this time, it delivered on average -0.12% per day. It delivered it's best daily return of +8.19%, during this period, on Friday, 9 Nov, 2018. There was initially a bullish trend during this period which started on 30 Nov, 2018 and went on till 5 Dec, 2018. The bullish trend returned +4.75% to investors. This was followed by a bearish trend that started on 16 Jan, 2019 and ended on 23 Jan, 2019. This bearish trend lost -7.75% of investor capital.

GUFICBIO had 3 profitable and 9 loss making months over the last year. During the last year, GUFICBIO underperformed NIFTY-50 index on monthly return basis. GUFICBIO significantly outperformed NIFTY-50 index in Apr 2018, when it returned +24.98% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GUFICBIO had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -14.7%. It is interesting to note that both GUFICBIO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.

GUFICBIO 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 GUFICBIO's volatility from 24 Oct, 2018 to 18 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 GUFICBIO has significant negative skewness in it's return distribution. This indicates that GUFICBIO is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GUFICBIO), two large cap instruments that deserve special mention are BAJAJFINSV and BAJFINANCE. They have significantly outperformed the overall market.

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