PLASTIBLENDS INDIA LTD

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.

Trend

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.

"Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.

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.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter