Mining Precious Gems-Screening methodologies for profitable stocks in the Indian stock market

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#​Mining

Precious Gems   

Screening methodologies for profitable stocks in the Indian stock market Author: Vinod Sreedharan

 

About the author I am a full-time stock market investor and trader who is very passionate about stock markets and equities. The whole human psychology and behavioural aspects of economics that drive the ups and downs of stock and market movements really inspires me. I believe that to have a sustained success in the stock market irrespective of any methodology, one needs to build a persona that thrives on relentless and constant learning. In other words, you have got to be a humble and lifelong learner. This, perhaps, is the only ‘​open secret’ that comes across as consistent among all the great and wise investors who ever walked planet Earth. Beyond this, in my experience, there does not seem to be any perfect recipe that works all the time in selecting winning stocks. We see many articles, books, posts that claim to teach the so called “​Secrets​” of stock picking. But once a secret is let out, it no longer remains a secret!! The market is a ​quick evolving ‘creature’ that aggressively adapts itself to negate the advantages of possessing these so called arguably eternal ‘secrets’. For these reasons, I find the best hedge (or edge) an average regular investor could have is to build a disciplined, unbiased, objective and focussed approach to selecting stocks. An approach that can be adapted, modified and tweaked to accommodate various factors. One that would adapt nimbly to changes that keep occuring on macros or politico-economic circumstances that affects markets. One that adapts to proactive and reactive market dynamics.

To that end - this book is an ode to learning, an ode to using screeners as one way to inculcate disciplined stock market picking. A strategy that is customisable, adaptable, amenable to feedback. This kind of methodology, keeps us - the investors - grounded, agile and always learning, even as we see results and/or reap profits from our picking. Remember this - “​there are really no failures, there is only feedback”.​ So, stay positive, humble and keep learning. Focus on the process and the personality, the persistence and the passion - results we desire will follow in due course. When a process (vs fluke) drives the outcomes for most part, we give lady luck the best chance to play on our side. Happy investing! Thank you - Vinod Sreedharan < ​[email protected]​ >

Gratitude Dedicated to life changing personality traits - “​Passion, Persistence, Purpose, Positivity​” and the will to be a relentless, humble, sincere lifelong reader and learner!

Table of Contents

1. 2. 3. 4. 5. 6.

Introduction Screener.in The Fundamentals Customizing screener.in The Screens Conclusion

Introduction This book is an effort to encourage and highlight the use of screeners to have a “bottom-up” approach for effective and optimized stock selection. It aims to help the readers build a screener based stock selection amidst all the choices of listed stocks in the Indian stock market. Further, the core emphasis will be on using ​screener.in and significant methodologies and paradigms that can be applied to build effective queries (aka screens) using ​screener.in The ‘Why’ for Screeners Screening the market for prospective stocks is by far the most disciplined, dis-passionate and effective way to find good stock investment ideas. Typically, we look at stocks based on what we see and hear - analyst reports, social media and other ‘tips and recommendations’, television and media news, periodicals and broadcasts, friends and relatives’ favourite lists et al. No matter which method is engaged in lining up the stocks of interest to us, screening gives us a dispassionate, objective, relatively less-biased option to verify, round up, enlist and cross-check stocks of interest. Screening for stocks is also a direct by-product being very correlated and in-line with the age of computers and technology. Today, algorithms can quickly run on the background and provide enriched data as a response to ‘smart’​ querying. However good one is at reading financial reports, annual reports, business journals, analyst stories and thereby deciphering and interpreting business

prospects, screening helps you sense and dig into smart opportunities in a much rapid, disciplined, objective, relaxed method. Thus, screeners are immensely valuable once you learn, roundup and practice the ‘criteria set’ that matters to your investing methodology and investing persona. More information on the prospective ‘criteria set’ and more on an ‘investing persona’ will come up in further chapters going ahead. The ‘What’ for Screeners If you are asking or just thinking aloud - “What are screeners(?)”, let’s do some de-mystification. Screeners are essentially smart stock querying tools. The way screeners work is pretty simple and straightforward. Through a screener, we ask the system to search through a database and identify stocks that match a set of specified criteria. The criteria is a set of ‘popular’ or standard stock fundamental (and/or technical) characteristic(s) that we find appealing or alluring. The characteristic could be based on a numerical or logical comparison (ie. greater than, lesser than equal to, AND , OR etc). A collection of this criteria characteristic as a set is called a ‘screen’. The results of such a screen would be the specific list of stocks that match and fit the specified criteria. The result could be a small number if the criteria set is very niche and/or extreme /strict. In the same vein, it could be a large number if the criteria set is relaxed, very basic or generic. In summary, we put in a criteria set into the screener utility to query the stock market to get us a list of stocks that fit nicely and that match into the specified criteria characteristic set.

The ‘Who’ & ‘When’ for Screeners ● Who exactly are screeners for? ● What kind of users or stock market participants are screeners meant for? ● What level of expertise is needed to use them? ● When does anyone use them? These must be the next set of curious queries that need answers, aren’t they! Well, here goes… Screeners are meant really for everyone and anyone interested in stocks and the stock market in any form and timeframe. The screening paradigm is very purposeful in helping a below average performing stock market participant to prospectively improve their odds of better and superior potential return yield. If used well, based on practice, feedback and adapting - the screeners can help raise our game and avoid being gullible to all sorts of stock market ‘wisdom generalities’, which are pretty unhelpful, sub-optimal and impractical in real world investing. In summary, screeners can be used by all stock market participants irrespective of their time in, experience of and knowledge about the stock markets. Of course, like most things in life, the yield might vary from person to person (or case to case) based on multiple variables at play, many of which are in an ​individual’s sphere of control and are ​trainable aspects. Finally, screeners can be used often and regularly. They ​should be used often and regularly. They should in fact be used as the first step in a ‘bottom up’ process of evaluating the entire stock market - looking for potential opportunities of sustainable return yield generation.

The ‘Which’ of Screeners So which screener do you use among the available ones ? That’s the next curious question isn’t it! (?) Here are some of the choices we have…..let’s peek in. 1) Screener.in Website:​ ​https://www.screener.in/ Charge: Free ​(** Screener Gold has paid premium features) Custom Querying: Yes! Very flexible Fundamental/Technical: Pure Fundamental Pre-set Screens: Available

2) Trendlyne Website:​ ​https://trendlyne.com/stock-screeners/ Charge: Basic is Free / Paid for Advanced/Expert features Custom Querying: Yes! Very flexible Fundamental/Technical: Fundamental / Technical (Techno-Funda possible)

Pre-set Screens: Available

3) Equitymaster Stock Screener Website​: ​https://www.equitymaster.com/research-it/company-info/stock-screener-india.asp Charge: Basic is Free Custom Querying: Limited via pre-built choices Fundamental/Technical: Fundamental Pre-set Screens: Available (** preferred choice in this)

4) Marketsmojo Website: ​https://www.marketsmojo.com/mojo/professionalhome Charge: Paid

5) ValueResearch Website​: ​https://www.valueresearchstocks.com Charge: Paid Custom Querying: Via pre-built choices Fundamental/Technical: Fundamental Pre-set Screens: Available

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There are a few more aside from the above and there are others which are more ‘pure’ technical screeners for querying based on stock chart patterns, candlesticks and indicators. While we avoid getting deep into the likeability and pros/cons of one vs the other among these, for the purpose of this book, we will stick to using ‘​screener.in​’ - the free version.

Screener.in Thus far, we covered the [ ​‘What’, ‘Why’, ‘Which’, ‘When’, ‘Who’ ​] of screeners and screening. This section of the book is about the screener.in website/tool and its usage. So, we have reached the ​‘How’​ of screeners here. I am sure some of us are now reasonably curious (even convinced!) that screeners are very useful and we want to go ahead and try them out. In that, we will use the free version of screener.in as our go-to screener for the rest of this book. Let us go through some of the basic steps of screener.in usage and some of its core aspects that are useful to know Day-one. Browsing through screener.in 1) Using your favourite browser, go to ​www.screener.in

2) The first thing to-do is to create a user login for ourselves. Use the login tab on the main page for this. Then use the ‘Register for free’ option to create a user login/password for yourself.

3) Once logged in, you get the main logged in page.

4) There is an option for issuing a ‘custom query’ at the bottom left of this page

5) ​The

Guide

https://www.screener.in/guides/creating-screens/

This is must-read. Spending 5-10 minutes on this article will give you a good overview on how to create screens at a high level. At this time, I would recommend that you spend some time going through this ‘creating screens’ page. Once you complete this activity, you will now have a clear picture of: a) Creating/Building out a new query b) Customisation of options in the column display c) Saving the custom query screen d) Setting alerts

6) In the ‘Company Search’ option on the main screener page, we can search for any stock we are interested in. I use the example of ‘Infosys’ here to illustrate:

The result for the company/stock searched for are:

a) A basic set of fundamental stock parameters (customisable by the user) b) A line chart of stock price performance (And volume) over multiple periods that can be selected by the user c) Pros / Cons of the company/stock under view d) Peer Comparison in the sector e) Quarterly Results figures f) Annual Profit and Loss figures g) Balance Sheet numbers h) Cash Flows details i) Other info - Recent Announcements, Annual Reports, Credit Ratings

One interesting piece of information can be viewed just below the Profit & Loss section that highlights the periodic stock performance on the most discussed and sought after fundamental parameters.

The above covers the basic usage of screener.in to screen stocks.

A few ‘advanced user’ custom configuration options that could also be useful is discussed in a later chapter.

The Fundamentals Screeners, much like any other data and analytics tools around, work on the ‘​garbage in - garbage out’​ paradigm. The results you get on any query based system will most likely be in congruence with the quality and intent of the user specified criteria-set in the query employed. The above aspect being the fulcrum and bottomline - a necessary aspect of effect screening is a sound hold on basics of “Stock Fundamentals”. In that, knowing ‘what is good’ and hence we want more of it, and ‘what is not good’ and hence we want less or none of it - is very critical to effective screening for stocks. One other aspect where this would prove critical is - broad based generic queries will lead to a huge number of results that is simply impractical and not useful. So, essentially once such results are observed, it is important to further fine-tune and increase the expectation of the ‘ask’ as far as the screener query is concerned. This will help eliminate noise and reach the real core set of a small number of stocks that actually warrant attention and the priority of focus. There are innumerable number of books, articles, blogs, videos available on the internet that claim to and might even give you the nirvanic wisdom in this area. Rather than going through the motions re-churning the same (aka ‘reinventing the wheel’), I am going to highlight some of the good books and/or articles that I recommend in this space and some of the more useful items/topics/criteria that need comprehensive focus and understanding while you go through the material. First up, here are some of the keywords, key concepts and key criteria that needs focussed understanding. There are many more, it can be called an

‘ocean in itself’, but nevertheless, it is always good to keep a handy set of core-criteria​ which are fit for purpose.

Key Criteria Set - the ‘must know’ list!

Note: Once more, ‘what, which, when, how, why’ are our friends. ● ● ● ● ●

What is it? Which qualification (genre) it falls under? How is it used/valued? When is it used in terms of context? Why is it important?

Books Note: (** Book excerpts are the summary of books from books.google.com)

​ Fundamental Analysis for investors - Raghu Palat ​ “Fundamental analysis is an essential, core skill in an investor's tool-kit for evaluating a company on the basis of its track record: sales, earnings, dividends, products, management, etc., as well as the economic and industry outlook. It is a value-based approach to stock market investing solid and prudent that typically offers handsome profits to the long-term investor. Raghu Palat's book will help you master the essentials of fundamental analysis. It clearly explains, with illustrations, all the analytical tools of economic, industry and company analysis, including ratios and cash flow. It shows you how to judge a company's management and its products, and discover what actually lies behind the figures and notes in a company's annual report. And, how to calculate the intrinsic value of a share.”

One Up On Wall Street: How to Use What You Already Know to Make Money in the Market - Peter Lynch “Penned by the famous mutual-fund manager, Peter Lynch, this book elaborates the many advantages that an average investor has over professionals and how they can help them reach financial triumph”

The Five Rules for successful stock investing - Pat Dorsey “Written by Morningstar's Director of Stock Analysis, Pat Dorsey, The Five Rules for Successful Stock Investing includes unparalleled stock research and investment strategies covering a wide range of stock-related topics. Investors will profit from such tips as: * How to dig into a financial statement and find hidden gold . . . and deception * How to find great companies that will create shareholder wealth * How to analyze every corner of the market, from banks to health care”

How to Avoid loss and earn consistently in the stock market Prasenjit Paul “Investing in high-quality business (stock) at the right price and holding them for a reasonable period is the only way for wealth creation.Written in an easy-to-understand and simple language, this book will guide you on how to select fundamentally strong business, when to buy and sell stocks and above all how to minimize or avoid loss in the stock market”

Everything you wanted to know about Stock market investing TV18 broadcast “From financial planning and the impact of inflation on investments, from equity investing strategies like top-down and bottom-up investing etc to risk mitigation measures like value averaging, using market volatility, this book makes your knowledge on investing in stocks holistic. “Everything you wanted to know about Stock Market Investing” also goes beyond just explaining how markets work. With practical tips and illustrations, axioms, action points and test questions it prepares you for your practical journey into the world of stocks. The book not only helps the investor comprehend the nuances of equity investing for wealth buildup, it also helps the investor understand macroeconomic aspects and their impact on businesses, how to respond in times of panic, how to avoid being the victim of stock market scams, and finally, how to compute equity investment returns before and after tax”

Tutorials Zerodha Varsity - ​https://zerodha.com/varsity/ ● ●

https://zerodha.com/varsity/module/introduction-to-stock-markets/ https://zerodha.com/varsity/module/fundamental-analysis/

Investopedia - ​https://www.investopedia.com/university/ ● ●

https://www.investopedia.com/university/fundamentalanalysis/ https://www.investopedia.com/university/all/fundamental-analysis/

========================================================= Apart from the above there are innumerable number of video trainings that you can search and dig out from sites like YouTube etc which are free and on MOOC sites like Udemy at a nominal cost. These will cover a range of fundamental and foundational aspects of Stocks, Equities and Investing in general. Unless you are a person who absolutely detests ​text based learning and prefers video as a medium, I would urge you to use the above tutorials / books as a basis to build a solid foundation for screening. As a caveat, I find that many of the free videos available on the internet are many times incomplete, incorrect, misleading while not conveying a holistic end-to-end perspective in a way that the above books et al. do so effectively.

Customizing screener.in In the previous chapters, we looked at the basic Screener.in aspects - user registration, logging in and basic views. Armed with enough fundamental foundational knowledge now, (you have gone through some of the material mentioned in the previous chapter, haven’t you!!!!), let us look at customizing screener.in for better effect. By default, when you log into screener.in and search for a stock, you get something like this:

We see some baseline fundamental parameters on the displayed stock details. Things like Market Cap, Book Value, Price, P/E, ROCE, ROE etc show up. While these are obviously key point in time parameters of importance, there are many others that can be configured to display. With those showing up, we would have a more comprehensive holistic feel of the stock valuation.

Steps to Configure and Customize

Use the ‘Add Quick Ratio’ option (see the snip ahead) - just type what you want in it to configure. (Look at the same result now with ‘Debt to Equity’ parameter added via ‘Add Quick Ratio’ option - this parameter was not present in the previous default snip view)

I am sure you the reader are now asking yourself - what are the available options? Is there a list ? Yes, there is Go to screener.in main page and look at the bottom of the page below the ‘create a custom query’ box on the right side, you will see an option “Show All Ratios”

Clicking on the Show All Ratios will launch the Ratio Gallery that has the list of all options categorised per the fundamental characteristic they fall under.

So - now is the time to map your fundamental analysis knowledge to the real world application of the same. If you have gone through the book/tutorial materials in the previous chapter, you would have lined up a dozen or two of criteria that matters most with what your goals are in the stock market. If you haven’t done that yet, I would urge you to revisit the previous chapter and go through the materials recommended there to build a solid sound foundation for screening stocks. Use the most interesting set of criteria you have identified to customise your screener.in. An example follows……………...

An example is snipped here……...screener view with custom configuration. This gives us a more holistic view of a stock’s fundamentals than the default view throws up.

The Screens Here’s where the ​‘rubber meets the road’.​ We will use all the knowledge, information, wisdom we gleaned through this journey thus far to come up with multiple screener screens (queries) to dig out good and ‘​fit for purpose’​ stocks from the stock market universe of choices. Further, we will categorize them under different criteria brackets so we can use them accordingly depending on the nature of our own persona, and our respective context and goals for investing. Always remember, not everything will suit everyone and there is really no ‘​one size fit all​’ like most things in life and nature. To make an effective stock pick, we need to understand ourselves, our persona, our risk profile and context. We always need to be clear on our goal - ​return expectation and time/period of intended holding​. ​The more passive one wants to be, the more conservative one should be on both of the aspects above. Further, the set of screens and queries below should be considered a good starting point to go ahead - experiment, play around, try out and customise it for your own purpose. There is really no ‘holy grail’ of screener query that is ‘guaranteed’ to work under any context. If that were so, most market participants would be walking-posing “Warren Buffet(s)” just by showing up. Please use the queries not as a ‘holy grail’ or epitome of perfection, but as a starting point to tickle your curiosity to dig, learn further and build a sustainable strategy. Another empirical suggestion to that end - one does ​not have to put in tons of money into a testing model to gauge or help you measure the returns and efficacy of an approach. Use a customised query - just allocate a small testing amount into your chosen candidates based on the query

results and characteristics you seek and let market provide you ‘​rich feedback​’ which you can use to adapt and rework. This keeps it simple - this keeps it evolving, progressive and adaptive. - this keeps it humble. Tip: Use these screener queries as a ​starting point.​ Modify, tweak, adapt them as you deem fit and gain experience and feedback from the market.

Growth oriented screens Rationale: These screens look primarily for ‘growth’ - that is increased or compounded Profit, Sales, Margins, EPS etc. over years or quarter or YoY (year on year) or QoQ (Quarter on Quarter) basis. Since, markets generally reward growth - especially recent growth, one could look to find ‘in-vogue’, ‘in-momentum’, ‘in-focus’ stock candidates in the results. This could be used to invest in such candidates for a shorter time-frame or till such a time as the growth is actually observed under their quarterly numbers churned out every quarter. ---------------------------------------------------------------------------------------------------1) Profitable stocks - recent periods Summary: Identify companies that have turned out healthy ​Profits and Margins​ in recent year(s) and quarter(s).

Net profit > Net Profit last year AND Net profit > Net Profit preceding year AND Net Profit latest quarter > Net Profit preceding quarter AND Net Profit latest quarter > Net Profit preceding year quarter AND Net Profit preceding quarter > Net profit 2quarters back AND Net profit 2quarters back > Net profit 3quarters back AND QoQ Profits > 10 AND YOY Quarterly profit growth > 10 AND Profit growth > Profit growth 3Years AND OPM > OPM last year AND OPM > OPM preceding year AND OPM latest quarter > OPM preceding quarter AND OPM latest quarter > OPM preceding year quarter AND

NPM latest quarter > NPM preceding quarter AND NPM latest quarter > NPM preceding year quarter

Highlights: This screen uses Yearly and Quarterly Profits and Margins (both Operating ie OPM and Net ie NPM) to screen for good matching stocks.

2) ​Growing in both Sales and Profit in recent periods. Summary: Identify companies that have turned out healthy ​Profits​, ​Sales and ​Margins​ in recent year(s) and quarter(s). Here, we add Sales figures into the mix when compared to Screen 1). This method is termed ‘progressive screening’ where you increase the ask/demand in terms of quality and quantity

Net profit > Net Profit last year AND Net profit > Net Profit preceding year AND Net Profit latest quarter > Net Profit preceding quarter AND Net Profit preceding quarter > Net profit 2quarters back AND Net profit 2quarters back > Net profit 3quarters back AND Sales > Sales last year AND Sales > Sales preceding year AND Sales latest quarter > Sales preceding quarter AND Sales preceding quarter > Sales 2quarters back AND Sales 2quarters back > Sales 3quarters back AND QoQ Sales > 10 AND QoQ Profits > 10 AND YOY Quarterly sales growth > 10 AND YOY Quarterly profit growth > 10 AND Profit growth > 10 AND

Sales growth > 10

Highlights: This screen uses Yearly and Quarterly Profits, Sales and Margins (both Operating ie OPM and Net ie NPM) to screen for suitable stocks.

3) ​Historical and present Profit and Sales growing at and above 10% Summary: Identify companies that have turned out greater than 10% growth (compounding) in ​Profits and ​Sales over various periods - distant past and recently.

Profit growth >10 AND Profit growth 3Years >10 AND Profit growth 5Years >10 AND Profit growth 7Years >10 AND Profit growth 10Years >10 AND YOY Quarterly profit growth >10 AND Sales growth >10 AND Sales growth 3Years >10 AND Sales growth 5Years >10 AND Sales growth 7Years >10 AND Sales growth 10Years >10 AND YOY Quarterly sales growth >10 AND QoQ Sales > 10 AND QoQ Profits > 10

Highlights: This screen uses a minimum 10% quantification yardstick on Yearly and Quarterly Profits and Sales to screen for suitable stocks.

4) ​Sales/Profit Growth compounding over a decade Summary: Identify companies that are serious and established Profit and Sales growth compounders over a longer term.

Profit growth > Profit growth 3Years AND Profit growth 3Years > Profit growth 5Years AND Profit growth 5Years > Profit growth 7Years AND Profit growth 7Years > Profit growth 10Years AND Sales growth > Sales growth 3Years AND Sales growth 3Years > Sales growth 5Years AND Sales growth 5Years > Sales growth 7Years AND Sales growth 7Years > Sales growth 10Years

Alternate:

Profit growth > Profit growth 3Years AND Profit growth 3Years > Profit growth 5Years AND Profit growth 5Years > Profit growth 7Years AND Profit growth 7Years > Profit growth 10Years AND Sales growth > Sales growth 3Years AND Sales growth 3Years > Sales growth 5Years AND Sales growth 5Years > Sales growth 7Years AND Sales growth 7Years > Sales growth 10Years AND QoQ Sales > 0 AND QoQ Profits > 0 AND YOY Quarterly sales growth > 0 AND YOY Quarterly profit growth > 0

Highlights: This screen uses a comparison logic with Sales and Profit growth to identify companies that are long term compounders historically.

5) ​Growth stocks in recent timeframe! Summary: Identify companies that have turned up eyeballs in recent time-frame. This attempts to exploit human ‘recency bias’ where we tend to remember or place more emphasis on near-term vs distant past for our decisions.

Sales growth > Sales growth 3Years AND Sales growth > 20 AND Profit growth > Profit growth 3Years AND Profit growth > 20 AND YOY Quarterly sales growth > 20 AND YOY Quarterly profit growth > 20 AND QoQ Sales > 20 AND QoQ Profits > 20 AND current price < 1.15 * Low price

Highlights: This screen uses a comparison logic with Sales and Profit growth in very recent time-frame to identify companies that could have increased momentum focus in the market.

6) ​Growth in EPS and Quarterly Sales/Profits in recent times Summary: Identify companies that have turned up good growth in Earnings Per Share (EPS) along with Profit/Sales numbers

EPS latest quarter > 1.2 * EPS preceding year quarter AND EPS latest quarter > 0 AND EPS > EPS preceding year AND EPS > 1.2 * EPS last year AND YOY Quarterly profit growth > 25 AND YOY Quarterly sales growth > 25 AND QoQ Sales > 20 AND QoQ Profits > 20 AND Market Capitalization > 100

Highlights: This screen uses a comparison logic adding EPS logic to the Sales and Profit growth in very recent time-frame to identify companies that could have increased momentum focus in the market.

7) ​EPS compounders Summary: Identify companies that have very good Earnings Per Share (EPS) growth (For many market participants and investors, EPS is the real bottom-line for the shareholders, that market values)

EPS > 1.25 * EPS last year AND EPS > 1.25* EPS preceding year AND EPS latest quarter > 1.2 * EPS preceding quarter AND EPS latest quarter > 1.2 * EPS preceding year quarter AND Expected quarterly EPS > 1.2 * EPS latest quarter

Highlights: This screen uses a comparison logic with EPS numbers to identify companies that are growing well on the EPS numbers they turn out.

8)​ Profit growing at n% (ex: 15%) Summary: Identify steady profit growers in the market

Profit growth >15 AND Profit growth 3Years >15 AND Profit growth 5Years >15 AND Profit growth 7Years > 15 AND Profit growth 10Years > 15 AND YOY Quarterly profit growth > 15 AND QoQ Profits > 15

Highlights: This screen uses a comparison logic to identify companies steadily growing and compounding their Profits at 15%

9) ​Constant and Steady market growers Summary: Identify companies augmenting their OPM and NPM (ie Profit margins) steadily. These are margin growers which should benefit their bottom-lines for most part! OPM > OPM last year AND OPM > OPM preceding year AND OPM 5Year > OPM 10Year AND OPM latest quarter > OPM AND OPM latest quarter > OPM preceding quarter AND OPM latest quarter > OPM preceding year quarter AND NPM latest quarter > NPM last year AND NPM latest quarter > NPM preceding year AND NPM latest quarter > NPM preceding quarter AND NPM latest quarter > NPM preceding year quarter

Highlights: This screen uses a comparison logic to identify companies steadily growing and compounding their Margins over Years.

10) ​Comprehensive Profit/Sales numbers Summary: Identify companies turning up very good raw numbers on Profit and Sales Net profit > Net Profit last year AND Net profit > Net Profit preceding year AND Net profit > Net profit preceding 12months AND Net Profit latest quarter > Net Profit preceding quarter AND Net Profit preceding quarter > Net profit 2quarters back AND Net profit 2quarters back > Net profit 3quarters back AND Net Profit latest quarter > Net Profit preceding year quarter AND sales > Sales last year AND Sales > Sales preceding year AND Sales > Sales preceding 12months AND Sales latest quarter > Sales preceding quarter AND Sales preceding quarter > Sales 2quarters back AND Sales 2quarters back > Sales 3quarters back AND Sales latest quarter > Sales preceding year quarter AND QoQ Profits > 1 AND QoQ Sales > 1 AND YOY Quarterly profit growth > 1 AND YOY Quarterly sales growth > 1

··

Highlights: This screen uses a comparison logic to identify companies that are doing well on their Profit and Sales account.

11) ​Focus on Quarterly result growers Summary: Identify companies that have very good YoY and QoQ Sales/Profit/EPS numbers QoQ Profits > 25 AND QoQ Sales > 25 AND YOY Quarterly profit growth > 25 AND YOY Quarterly sales growth > 25 AND EPS latest quarter / EPS preceding quarter > 1.25 AND EPS latest quarter / EPS preceding year quarter > 1.25

Highlights: This screen uses a comparison logic to identify companies that are doing well on their Quarterly numbers 12) ​ ​Comprehensive Revenue/Sales compounders Summary: Identify companies that have very comprehensive Revenue/Sales numbers and growth. Sales latest quarter > Sales preceding quarter AND Sales preceding quarter > Sales 2quarters back AND Sales 2quarters back > Sales 3quarters back AND Sales > Sales last year AND Sales preceding quarter > Sales preceding year quarter AND sales growth > Sales growth 3Years AND Sales growth 3Years > Sales growth 5Years AND Sales growth 5Years > Sales growth 7Years AND Sales growth 7Years > Sales growth 10Years

Highlights: This screen uses a comparison logic to identify companies that are doing comprehensively well on their Revenue growth and Sales numbers.

13)​

​Comprehensive Profit compounders

Summary: growth.

Identify companies that have very comprehensive Profit numbers and

Net profit > Net Profit last year AND Net profit last year > Net Profit preceding year AND Net Profit latest quarter > Net Profit preceding quarter AND Net Profit preceding quarter > Net profit 2quarters back AND Net profit 2quarters back > Net profit 3quarters back AND Net Profit latest quarter > Net Profit preceding year quarter AND Profit growth > Profit growth 3Years AND Profit growth 3Years > Profit growth 5Years AND Profit growth 5Years > Profit growth 7Years AND Profit growth 7Years > Profit growth 10Years

Highlights: This screen uses a comparison logic to identify companies that are doing comprehensively well on their Profit growth and Profit numbers ----------------------------------------------------------------------------------------------------

Value and/or Ratio oriented screens These screens primarily look for ‘value’ - that is stocks quoting at classically reasonable to low valuations. The value could come in terms of parameters like Price-to-Earnings (PE) and/or PE to Growth ratio (PEG) and/or Price to Sales (P2S) or could come out of attractive combination of Fundamental ratios like Return On Earning (ROE) or Return on Capital Employed (ROCE) et al. Since markets are cyclical in nature - due to human emotions and market psychology, good stocks tend to get beaten down into attractive valuations. With Price that discounts their potential in one or many directions and parameters. This could be used as an opportunity for medium to long term investing, buying stocks in discount and waiting for market to re-discover them and rising them back to their glory. This can be the very core tenet of the oft overused term - ‘​Value Investing​’ ---------------------------------------------------------------------------------------------------1) Classical Value based on key Fundamental Return Ratios Summary: Identify companies that stand out well from a classic key fundamental return ratio perspective (ie. latest ROE/ROCE/ROIC/ROA perspective)

Return on equity > 20 AND Return on assets > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND CROIC > 20 AND EVEBITDA < 10

Highlights: This screen uses a comparison logic to identify companies that are above 20 in their latest key Fundamental Return Ratios. Then uses EVEBITDA (Enterprise Value/ Earnings Before Interest, Tax, Depreciation, Amortization) to cut down the list to get those with deeper value.

2) ​ROE gems Summary: Identify companies that stand out from latest and historical averages perspective for the key Fundamental parameter - Return On Equity (ROE)

Average return on equity 10Years > 15 AND Average return on equity 7Years >15 AND Average return on equity 5Years >15 AND Return on equity 5years growth > 15 AND Average return on equity 3Years >20 AND Return on equity > 20

Highlights: This screen uses a comparison logic to identify companies that above 15 on their ROE multi-year averages.

3) ​ROCE

gems

Summary: Identify companies that stand out from latest and historical averages perspective for the key Fundamental parameter - Return On Capital Employed (ROCE)

Average return on capital employed 10Years > 20 AND Average return on capital employed 7Years > 20 AND Average return on capital employed 5Years > 20 AND Average return on capital employed 3Years > 25 AND Return on capital employed >25

Highlights: This screen uses a comparison logic to identify companies that above 20 on their ROCE multi-year averages.

4)​

​ROIC gems with good Earnings Yield value

Summary: Identify companies that have more than 25 on the Fundamental parameter - Return On Invested Capital (ROIC).

Return on invested capital > 25 AND CROIC > 25 AND Earnings yield > 15

Highlights: This screen uses a comparison logic to identify companies that above 25 on their ROIC and tones down the list by asking for an Earnings Yield of greater than 15.

5) ​Classic Value Investing Ratio Picks Summary: Identify companies are within bounds of common accepted Value Investing Fundamental parameters

Price to Earning < 15 AND Price to Sales < 1 AND Price to book value < 1.5 AND PEG Ratio < 1 AND EVEBITDA < 10 AND Earnings yield > 15

Highlights: This screen uses a comparison logic to identify companies that fit into Classic Value Investing criteria using P/E, P/S, P/BV, PEG, EVEBITDA and EY

Growth At Reasonable Value / Growth With Attractive Ratios Thus far, we have looked at how to dig up growth stocks and value stocks. But can there be a fusion of the two paradigms. Growth at reasonable price and value ? Well, that’s what this section is all about. These screens look for ‘Growth at Reasonable Price’ (GARP) or ‘Growth at Reasonable Value’ (GARV) type stocks that could be a ‘win-win’ option in the market. So in order to find GARP/GARV type stocks, we will have to combine the Growth parameters (Sales/Profits/Margins/EPS etc) with the Value and Ratio parameters (ROE/ROCE/PE/PEG etc) and come up with fusion screens. This is essentially the zone of ‘​Investing nirvana​’ where we attempt to find Growth stocks that market should ideally favour at prices that are favourable to us - to make wholesome gains in terms of profit and return yield. ------------------------------------------------------------------------------------------------------------------

1) Return Ratio Compounders Summary: Identify companies that are steady compounders of their multi-year ROE, ROCE Return Ratios now available at PEG < 1

Return on capital employed > Return on capital employed preceding year AND Return on capital employed preceding year > Average return on capital employed 3Years AND Average return on capital employed 3Years > Average return on capital employed 5Years AND Average return on capital employed 5Years > Average return on capital employed 7Years AND Average return on capital employed 7Years > Average return on capital employed 10Years AND Return on equity > Return on equity preceding year AND Return on equity preceding year > Average return on equity 3Years AND Average return on equity 3Years > Average return on equity 5Years AND Average return on equity 5Years > Average return on equity 7Years AND Average return on equity 7Years > Average return on equity 10Years AND PEG Ratio < 1

Highlights: This screen uses a comparison logic to identify companies have augmented multi-year growth on Average Return Ratios and pruned the list to only include those with PEG Ratio of less than 1.

2) ​EPS Growth with good Return Ratio set on yearly basis Summary: Identify companies that have shown good EPS growth on Yearly and Quarterly basis recently along with good ROE/ROCE/ROIC ratio available at PEG < 1.5 EPS latest quarter > 1.2 * EPS preceding year quarter AND EPS latest quarter > 0 AND EPS latest quarter > 1.2 * EPS preceding quarter AND EPS > EPS preceding year AND EPS > EPS last year AND Return on equity > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND

Market Capitalization > 100 and PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to identify companies have good EPS growth along with ROE/ROCE/ROIC value of greater than 20 with a PEG Ratio below 1.5

3) ​EPS Growth with good value on multi-year Average Return Ratio Summary: Identify companies that have shown good EPS growth on Yearly and Quarterly basis recently along with good 3 year/5 year ROE/ROCE/ROIC averages available at PEG < 1.5

EPS latest quarter > 1.2 * EPS preceding year quarter AND EPS latest quarter > 0 AND EPS latest quarter > 1.2 * EPS preceding quarter AND EPS > EPS preceding year AND EPS > EPS last year AND Return on equity > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND Average return on equity 3Years > 20 AND Average return on equity 5Years > 20 AND Average return on capital employed 3Years > 20 AND Average return on capital employed 5Years > 20 AND PEG RAtio < 1.5

Highlights: This screen uses a comparison logic to identify companies have good EPS growth along with multi-year average ROE/ROCE/ROIC value of greater than 20 with a PEG Ratio below 1.5

4) ​Quarterly Growth with good average return ratios Summary: Identify companies that have shown good Sales/Profit growth numbers in recent times and have a good record on their Average Return Ratios. Return on equity > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND Average return on equity 3Years > 20 AND Average return on equity 5Years > 20 AND Average return on capital employed 3Years > 20 AND Average return on capital employed 5Years > 20 AND Market Capitalization > 100 AND QoQ Profits > 20 AND QoQ Sales > 20 AND YOY Quarterly sales growth > 20 AND YOY Quarterly profit growth > 20

Highlights: This screen uses a comparison logic to identify companies have good QoQ/YoY Profit and Sales numbers growth along with multi-year average ROE/ROCE/ROIC value of greater than 20.

5) ​Quarterly growers with good recent yearly return ratios Summary: Identify companies that have shown good Sales/Profit growth numbers in recent times and have a good ROE/ROCE value on a yearly basis. Return on equity > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND Market Capitalization > 100 AND QoQ Profits > 20 AND

QoQ Sales > 20 AND YOY Quarterly sales growth > 20 AND YOY Quarterly profit growth > 20

Highlights: This screen uses a comparison logic to identify companies have good QoQ/YoY Profit and Sales numbers growth along a yearly ROE/ROCE/ROIC return ratio value greater than 20

6) ​Sales and Profit growth compounder with good set of Average Return Ratios Summary: Identify companies that have shown multi-year compounded growth in Sales/Profit growth numbers and have good average ROE/ROCE value. Return on equity > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND Average return on equity 3Years > 20 AND Average return on equity 5Years > 20 AND Average return on capital employed 3Years > 20 AND Average return on capital employed 5Years > 20 AND Market Capitalization > 100 AND Sales growth > 15 AND Sales growth 3Years > 15 AND Sales growth 5Years > 15 AND Profit growth > 20 AND Profit growth 3Years > 20 AND Profit growth 5Years > 20

Highlights: This screen uses a comparison logic to identify companies have good multi-year Profit and Sales growth numbers growth along a healthy average ROE/ROCE/ROIC return ratio value greater than 20

7) ​Yearly Sales and Profit growth with good Return Ratios available at PEG < 1 Summary: Identify companies that have health growth and return ratios available at PEG Ratio < 1. Return on equity > 20 AND Return on capital employed > 20 AND Return on invested capital > 20 AND Market Capitalization > 100 AND Sales growth > 20 AND Profit growth > 30 AND PEG Ratio < 1

Highlights: This screen uses a comparison logic to identify companies have good Sales/Profit yearly growth with ROE/ROCE/ROIC greater than 20 and PEG Ratio < 1

8) ​10% Allrounders Summary: Identify companies that have a 10% performance all-round on various growth and return ratio parameters Return on equity > 10 AND Return on equity preceding year > 10 AND Average return on equity 3Years > 10 AND Average return on equity 5Years > 10 AND Average return on equity 7Years > 10 AND Average return on equity 10Years > 10 AND Return on equity 5years growth > 10 AND Sales growth > 10 AND Profit growth > 10 AND

YOY Quarterly sales growth > 10 AND YOY Quarterly profit growth > 10 AND QoQ Profits > 10 AND QoQ Sales > 10

Highlights: This screen uses a comparison logic to identify companies are growing at 10% all around - Sales/Profits/ROE/ROCE et al.

9) ​Good historical Ratio performers at reasonable PEG value Summary: Return of Equity compounding companies available at PEG ratio 10 AND Return on equity preceding year > 10 AND Average return on equity 3Years > 10 AND Average return on equity 5Years > 10 AND Average return on equity 7Years > 10 AND Average return on equity 10Years > 10 AND Return on equity 5years growth > 10 AND Sales growth > 10 AND Profit growth > 10 AND PEG Ratio < 1 AND Price to earning / Profit growth < 1

Highlights: This screen uses a comparison logic to screen for stocks that are compounding the ROE over 10% over multi-years, have yearly Sales/Profit growth over 10% and available at PEG of below 1.

10) ​Good ratio performers at reasonable PEG and Price/Sales value Summary: Return of Equity compounding companies available at PEG ratio < 1 and Price/Sales < 1 Return on equity > 10 AND Return on equity preceding year > 10 AND Average return on equity 3Years > 10 AND Average return on equity 5Years > 10 AND Average return on equity 7Years > 10 AND Average return on equity 10Years > 10 AND Return on equity 5years growth > 10 AND Sales growth > 10 AND Profit growth > 10 AND PEG Ratio < 1 AND Price to earning / Profit growth < 1 AND Price to Sales < 1

Highlights: This screen is similar basis as the previous screen 9) with added criteria of Price/Sales < 1

11) ​ Quarterly Growth with Value Summary: Companies growing at 10% on Sales/Profit/ROE from a quarterly numbers perspective available at PEG Ratio < 1 and Price/Sales 10 AND Return on equity preceding year > 10 AND YOY Quarterly sales growth > 10 AND YOY Quarterly profit growth > 10 AND QoQ Profits > 10 AND QoQ Sales > 10 AND PEG Ratio < 1 AND

Price to Sales < 1

Highlights: This screen uses a comparison logic to screen for stocks which have YOY and QOQ Sales/Profits growing at > 10%, with ROE value of above 10 and PEG and P/S below 1.

12) ​EPS growth at good valuation from PEG and Price/Sales aspects Summary: Companies growing at 10% on EPS quarterly and yearly numbers available at PEG Ratio < 1 and Price/Sales < 1 Return on equity > 10 AND Return on equity preceding year > 10 AND PEG Ratio < 1 AND Price to Sales < 1 AND EPS latest quarter > 1.1 * EPS preceding quarter AND EPS latest quarter > 1.1 * EPS preceding year quarter AND EPS > 1.1 * EPS last year

Highlights: This screen uses a comparison logic to screen for stocks which have healthy EPS numbers, ROE values and available at PEG below 1 and P/S below 1

13) ​Undervalued from Price/Book-Value, PEG and Price/Sales with good ratios and healthy Piotroski Score

Price to book value < 2 AND Piotroski score > 7 AND PEG Ratio < 1 AND Price to Sales < 1 AND

Return on equity > 15 AND Return on capital employed > 15

Highlights: This screen uses a comparison logic to screen for stocks which have healthy EPS numbers, ROE values and available at PEG below 1 and P/S below 1 14) ​Good Valuations based on Misc. parameters Return on invested capital > 20 AND Earnings yield > 15 AND EVEBITDA < 10 AND Piotroski score > 7 AND Market Capitalization > 100 AND PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to screen for stocks that stand out based on a holistics set of miscellaneous valuation parameters like ROIC/ EY/ EVEBITDA/ P-Score and PEG.

Dividend Gems These screens look for stocks with a compelling and consistent dividend yield which is another way of looking at stock return yield aside and apart from the gain due to stock price increasing from the purchase price. Consistency of dividend can also be somewhat inferred as ‘shareholder friendly or shareholder concerned’ management. --------------------------------------------------------------------------------------------------------------------1) ​Increasing Dividend trend

Summary: Companies growing their dividend over multi-year Dividend last year > Average 5years dividend AND Dividend preceding year > Average 5years dividend AND Dividend Payout > Average dividend payout 3years AND Dividend yield > 2.5

Highlights: This screen uses a comparison logic to screen for stocks with a dividend yield of greater than 2.5 while consistently increasing the dividend over a multi-year period. 2) ​Good Dividend trend and good Valuations Summary: Companies growing their dividend over multi-year, available now at reasonable valuations Dividend last year > Average 5years dividend AND Dividend preceding year > Average 5years dividend AND Dividend Payout > Average dividend payout 3years AND Dividend yield > 2.5 AND PEG Ratio < 1 AND Price to Sales < 1

Highlights: This screen uses a comparison logic to screen for stocks with a dividend yield of greater than 2.5 while consistently increasing the dividend over a multi-year period, further pruning the list to those available at PEG < 1 and P/S below 1

3) ​Quarterly growers with good Dividend Yield Summary: Companies with good QOQ and YOY Sales/Profit growth and a healthy dividend yield. Dividend yield > 2 AND YOY Quarterly sales growth > 10 AND YOY Quarterly profit growth > 10 AND QoQ Profits > 10 AND QoQ Sales > 10

Highlights: This screen uses a comparison logic to screen for stocks with a dividend yield of greater than 2 along with good Quarterly growth numbers.

4) ​Good Return Ratios with healthy dividend yield Summary: Companies with good multi-year Fundamental Return Ratios along with a healthy dividend yield. Return on equity > 10 AND Return on equity preceding year > 10 AND Average return on equity 3Years > 10 AND Average return on equity 5Years > 10 AND Average return on equity 7Years > 10 AND Average return on equity 10Years > 10 AND Return on equity 5years growth > 10 AND

Dividend yield > 2

Highlights: This screen uses a comparison logic to screen for stocks with a dividend yield of greater than 2 along with good multi-year averages of ROE above 10.

5) ​Misc Value parameters with good Dividend Summary: Companies with good Fundamental Value, low debt and healthy dividend. Return on equity > 20 AND Dividend Payout Ratio > 20 AND Debt to equity >0 AND Debt to equity < 1 AND Dividend yield > 2 AND PEG Ratio < 1

Highlights: This screen uses a comparison logic to screen for stocks with a dividend yield of greater than 2 along Debt/Equity < 1 and PEG < 1 and ROE above 20

Cash Flow Gems These screens look for stocks with a compelling and consistent Cash flows. Ultimately it is present and future cash flows that differentiate and provide sustainability to a business. Without consistent cash flows, a company could head into a debt-trap disaster and even go bust! Hence, Cash flow and working capital management is a prime gauge of management efficiency and quality. ---------------------------------------------------------------------------------------------------------------------

1) Good Cash flow Value Summary: Companies with healthy Cash flow status and available at good value. Cash end of last year > Cash beginning of last year AND Operating cash flow 3years > Operating cash flow 5years AND Investing cash flow 3years > Investing cash flow 5years AND Free cash flow last year > 0 AND Net cash flow last year > 0 AND PEG Ratio < 1

Highlights: This screen uses a comparison logic to screen for stocks with a increasing Cash flow situation and Free Cash Flow above 0, available at PEG below 1

2)​

​Good Cash flow Growth

Summary: Companies with healthy Cash flow status and good Quarterly growth numbers.

Cash end of last year > Cash beginning of last year AND Operating cash flow 3years > Operating cash flow 5years AND Investing cash flow 3years > Investing cash flow 5years AND Free cash flow last year > 0 AND Net cash flow last year > 0 AND YOY Quarterly sales growth > 10 AND YOY Quarterly profit growth > 10 AND QoQ Profits > 0 AND QoQ Sales > 0

Highlights: This screen uses a comparison logic to screen for stocks with a increasing Cash flow situation and Free Cash Flow above 0, with healthy Quarterly growth rate in Sales/Profits.

3) ​Good Cash flow with Return Ratio Summary: Companies with healthy Cash flow status and good Return Ratios. Cash end of last year > Cash beginning of last year AND Operating cash flow 3years > Operating cash flow 5years AND Investing cash flow 3years > Investing cash flow 5years AND Free cash flow last year > 0 AND Net cash flow last year > 0 AND Return on Equity > 15 AND Return on capital employed > 15 AND Return on invested capital > 15

Highlights: This screen uses a comparison logic to screen for stocks with a increasing Cash flow situation and Free Cash Flow above 0, with healthy ROE/ROCE/ROIC of above 15 on a yearly basis.

4) ​Increasing Cash flow over years Summary: Companies with compounding Cash flow parameters Net cash flow last year > Operating cash flow 3years AND Operating cash flow 3years > Operating cash flow 5years AND Operating cash flow 5years > Operating cash flow 7years AND Operating cash flow 7years > Operating cash flow 10years AND Investing cash flow 3years > Investing cash flow 5years AND Investing cash flow 5years > Investing cash flow 7years AND Investing cash flow 7years > Investing cash flow 10years AND Net cash flow last year > Investing cash flow 3years

Highlights: This screen uses a comparison logic to screen for stocks with a multi-year compounding in their Cash Flows.

Versatile - Combo scans These screens look for stocks with a holistic diverse set of parameters. Companies that cross this barrier could be looked at as high potential stocks that prospectively could return very good and safe return yield. ---------------------------------------------------------------------------------------------------------------------

1) ​Versatile companies - Screen 1 Summary: Companies that show strong growth in Profits/Margins available at reasonable PEG Ratio Profit after tax > 1.1* Profit after tax last year AND Profit after tax > 1.1 * Profit after tax preceding year AND Profit after tax latest quarter > 1.1 * Profit after tax preceding quarter AND Profit after tax latest quarter > 1.1 * Profit after tax preceding year quarter AND Net profit > 1.15 * Net Profit last year AND Net profit > 1.1 * Net Profit preceding year AND Net Profit latest quarter > 1.1 * Net Profit preceding quarter AND Net Profit latest quarter > 1.1 * Net Profit preceding year quarter AND NPM latest quarter > NPM preceding quarter AND YOY Quarterly profit growth > 20 AND QoQ Profits > 20 AND OPM > OPM last year AND OPM > OPM preceding year AND OPM latest quarter > OPM preceding quarter AND OPM latest quarter > OPM preceding year quarter AND Profit growth > Profit growth 3Years AND Debt to equity < 1 and PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to screen for stocks with a combination of Profit growth, Operating Margin growth and reasonable valuation with PEG below 1.5

2) ​Versatile Companies - Screen 2 Summary: Companies that show strong growth in Sales/Profits available at reasonable PEG Ratio

Sales growth >10 AND Sales growth 3Years >10 AND Sales growth 5Years >10 AND Sales growth 7Years >10 AND Sales growth 10Years >10 AND YOY Quarterly sales growth >10 AND Profit growth >10 AND Profit growth 3Years >10 AND Profit growth 5Years >10 AND Profit growth 7Years >10 AND Profit growth 10Years >10 AND YOY Quarterly profit growth >10 AND QoQ Sales > 10 AND QoQ Profits > 10 AND Profit after tax > 10 AND Profit after tax last year > 10 AND Profit after tax preceding year > 10 AND Profit after tax latest quarter > 10 AND Profit after tax preceding year quarter AND Average Earnings 5Year > 10 AND Average Earnings 10Year > 10 AND Net profit > 10 AND Net Profit last year > 10 AND Net Profit preceding year > 10 AND Net Profit latest quarter > 10 AND PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to screen for stocks with a combination of Profit growth, Revenue growth and reasonable valuation with PEG below 1.5 3) ​Versatile

Companies - Screen 3

Summary: Companies that show strong growth on multiple parameters and available at reasonable value.

Earnings yield > 10 AND ((Sales growth > Sales growth 3Years AND OPM > OPM 5Year) AND (Return on equity > Average return on equity 3Years AND Return on equity > Average return on equity 5Years)) AND Return on capital employed > 20 and YOY Quarterly sales growth > 10 and YOY Quarterly profit growth > 15 and Piotroski score >= 7 and PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to screen for stocks with a combination of Profit growth, Revenue growth, ROE growth with a reasonable valuation with PEG below 1.5.

4) ​Versatile Companies - Screen 4 Summary: Pedigree companies that show strong growth on multiple parameters and available at reasonable value. Return on equity >25 AND Debt to equity 20 AND

Sales growth 3Years >20 AND Profit growth 3Years >20 AND Interest Coverage >5 AND Average dividend payout 3years >10 AND Current ratio >1 AND Dividend yield >0.1 AND Average return on equity 3Years >20 AND Sales last year >200 AND Return on equity 5years growth >10 AND OPM >10 AND NPM last year >4 AND OPM latest quarter >10 AND NPM latest quarter >4 AND Return on capital employed >15 AND Market Cap to Sales debt AND Sales last year > Net worth AND PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to screen for stocks with a combination of Profits/Sales/Return Ratio/Margins etc with a PEG below 1.5. 5) ​ ​Versatile

Companies - Screen 5

Summary: Companies that show strong growth on ROCE/ROE and available at reasonable value. Average return on capital employed 10Years > 20 AND Average return on capital employed 7Years > 20 AND Average return on capital employed 5Years > 20 AND Average return on capital employed 3Years > 20 AND Return on capital employed > 20 AND Average return on equity 10Years > 15 AND Average return on equity 7Years > 15 AND

Average return on equity 5Years > 15 AND Average return on equity 3Years > 15 AND Return on equity > 15 AND Up from 52w low < 10% AND PEG Ratio < 1.5

Highlights: This screen uses a comparison logic to screen for stocks with a combination of ROCE/ROE growth above 15 with a reasonable valuation with PEG below 1.5 and available near yearly lows.

Screener custom parameters These screens look for stocks that match certain unique parameters that Screener.in has developed to effectively screen for stocks. These are proprietary algorithms so we would not know how Screener folks are calculating them, hence making it difficult to exactly correlate it with any particular commonly known and loved Fundamental parameter. ---------------------------------------------------------------------------------------------------------------------

1) ​Using Screener’s G-Factor and P-Score G Factor >=7 AND Piotroski score >=7 AND current price > 30 AND debt to equity < 1 AND Interest Coverage > 2 AND Reserves > debt

Highlights: This screen uses a comparison logic to screen for stocks with a combination of certain screener custom parameters (G Factor / Piotroski score) with health debt and leverage levels. 2) ​ Based on expected numbers Expected quarterly EPS > EPS AND Expected quarterly EPS > EPS latest quarter AND Expected quarterly sales > Sales AND Expected quarterly sales > QoQ Sales AND Expected quarterly net profit > Net profit AND Expected quarterly net profit > Net Profit latest quarter AND Expected quarterly sales growth > Sales growth AND Expected quarterly sales growth > YOY Quarterly sales growth AND Expected quarterly operating profit > Operating profit AND Expected quarterly operating profit > Operating profit latest quarter

Highlights: This screen uses a comparison logic to screen for stocks whose upcoming quarterly numbers based on Screener’s expected quarterly results calculations are looking good 3) ​ ​Price below Graham Number current price < Graham Number AND G Factor > 6 AND Piotroski score > 7 AND PEG Ratio < 1

Highlights: This screen uses a comparison logic to screen for stocks that have good numbers on Screener parameters like G Factor, P-Score while the current price is lesser than Graham Number! (a screener custom parameter based on Benjamin Graham’s formula) 4) ​ ​Reserves and Equity Capital based gems Equity capital + Reserves > Market Capitalization AND Debt < Equity capital + Reserves AND Net profit > 0 AND Net profit > Net Profit last year AND OPM > 15 AND Market Capitalization > 100 AND Sales > Sales last year AND EPS > EPS last year

Highlights: This screen uses a comparison logic to screen for stocks that have healthy Reserves and under-valued on Market Capitalization, healthy debt levels and good growth on Profit, Sales, EPS and Margin on yearly basis.

Conclusion We are now at the end of this book. Our journey started with the ‘what, where, which, when and how’ of screeners, then taking a dive-in into screener.in and its configuration, even as we did some comprehensive reading into the Fundamentals aspect of stocks through the book and tutorial material pointed out. With these baked in, we finally looked at many sample screens under different paradigms and headings. There is no shortcut to effective practice. I once again recommend that you understand each and every sample screen so you can adapt and customise it as per your requirements. Once that is accomplished, the best step is to actually try it out in real markets by investing small amounts (aka test-allocations) into a few chosen stocks. This will enable you to get rich feedback from actual market on the performance of the set of stocks that few of the screens you customised lead into. The feedback obtained thus - will also help you further adapt, optimize the criteria set for effective follow-up screening. I will repeat the golden words again - remember, “​there are really no failures, only feedback”​ , Persistence, Patience and Positivity are irreplaceable mental assets in terms of qualities for sustainable wealth building. I hope this book was enriching and added wholesome value in your respective investing journeys. Here’s wishing all of us ​‘bon wealth’ a ​ nd sustainable success​ i​ n the stock market. Thank You Vinod Sreedharan Feedback and Suggestions: ​[email protected]