9.6 +0.1 (+1.05%) Sell

Don't go profit booking on UTTAMSTL now, it delivered a decent return

13 min read

UTTAMSTL managed to marginally outperform the broader market today. On a longer term basis, investors in UTTAM GALVA STEELS LTD made -0.13% per day. Wednesday's performance of +1.05% was a significant outperformance compared to it's daily average.

[Themes containing UTTAMSTL]

UTTAMSTL showed a down trend over the last 3 months. During this period UTTAMSTL lost -3.52% and saw a maximum drawdown of -23.08%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in UTTAMSTL till volatility reduces and a clear trend emerges.


UTTAMSTL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, UTTAMSTL underperformed the NIFTY-50 index on 57% days.

UTTAMSTL returned losses on 64% days in the last three months. During this time, it delivered on average -0.02% per day. It delivered it's best daily return of +5.0%, during this period, on Thursday, 29 Nov, 2018. There was initially a bullish trend during this period which started on 24 Oct, 2018 and went on till 30 Oct, 2018. The bullish trend returned +18.74% to investors. This was followed by a bearish trend that started on 5 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -12.07% of investor capital.

UTTAMSTL had 4 profitable and 8 loss making months over the last year. During the last year, number of profitable months of UTTAMSTL and NIFTY-50 index were the same. UTTAMSTL significantly outperformed NIFTY-50 index in Oct 2018, when it returned +23.04% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. UTTAMSTL had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Apr 2018 to Jun 2018) during which period it delivered -30.86%. It is interesting to note that both UTTAMSTL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Your investment belongs to the market and your profits belong to you.
-- Vijay Kedia

UTTAMSTL 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 surge in UTTAMSTL's volatility from 24 Oct, 2018 to 11 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 UTTAMSTL has positive skewness in it's return distribution. This indicates that investors can expect UTTAMSTL to make attempts to recover from drawdowns quickly. Which makes UTTAMSTL a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in UTTAMSTL), KARURVYSYA is a mid cap that deserves to be closely tracked for investment opportunities.

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