178.7 -1.83 (-1.02%) Sell

PLASTIBLEN investors doing a reality check

13 min read

PLASTIBLENDS INDIA LTD delivered lacklustre performance on Friday. It lost -1.02% to close at 178.7. It is currently trading -30% below it's 52 week high of 257.15.

[Themes containing PLASTIBLEN]

PLASTIBLEN is currently in a down trend. The current bearish signal has generated a profit of +15.73% for investors in the last three months.


PLASTIBLEN has been underperforming the NIFTY-50 index in recent time, after having outperformed till 10 Jul, 2017. Over the last 3 years and 1 month, PLASTIBLEN underperformed the NIFTY-50 index on 51% days.

During the last three months PLASTIBLEN delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +6.68%) was on Wednesday, 19 Dec, 2018. While it's worst loss in the same period (of -7.5%) was on Tuesday, 30 Oct, 2018. There was initially a bullish trend during this period which started on 24 Oct, 2018 and went on till 29 Oct, 2018. The bullish trend returned +8.49% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 6 Dec, 2018. This bearish trend lost -12.4% of investor capital.

PLASTIBLEN had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of PLASTIBLEN and NIFTY-50 index were the same. PLASTIBLEN significantly outperformed NIFTY-50 index in Jul 2018, when it returned +16.39% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PLASTIBLEN and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both PLASTIBLEN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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PLASTIBLEN 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 PLASTIBLEN's volatility from 25 Oct, 2018 to 17 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 PLASTIBLEN has significant negative skewness in it's return distribution. This indicates that PLASTIBLEN is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in PLASTIBLEN), three large cap instruments that deserve special mention are BRITANNIA, TCS and BAJFINANCE. They have all outperformed the market and must be closely watched for investment opportunities.

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