Here we have offered a selection of Buffett-type companies applying some of the quantitative parameters that Buffett favours. The original universe was BSE 500. We looked for companies that in the past 10 years have shown steady, predictable earnings growth (i.e., EPS has either grown year after year; if it has dropped, the drop has not exceeded 45 per cent of the previous year's EPS). Their long-term debt can be paid back within five years or less. We sought at least 20 per cent RoE and 15 per cent return on total capital. We also sought companies with positive free cash flows. Lastly, we only kept companies that yielded more than 12 per cent return on retained earnings for past 10 years. We have not applied valuation parameters. Apply those filters yourself using this list as a starting point. Stocks in bold are ones that met Buffett's parameters in the strictest sense.
| Company | | 10-yr CAGR in EPS (%) | | Debt/PAT | | 10-yr average RoE (%) | | 10-yr average RoTC (%) | | Utilisation of Retained Profit (%)
| |
Asian Paints | | 14.96 | | 0.18 | | 30.88 | | 26.06 | | 30.68
| |
Aventis Pharma | | 17.2 | | 0 | | 24.11 | | 23.2 | | 17.47
| |
Berger Paints | | 15.85 | | 0.99 | | 23.59 | | 17.69 | | 22.21
| |
Bharat Electronics | | 21.13 | | 0 | | 24.86 | | 23.8 | | 21.59
| |
Blue Star | | 28.27 | | 0.13 | | 32 | | 26.43 | | 45.76
| |
Bosch | | 22.51 | | 0.48 | | 21.97 | | 19.9 | | 16.96
| |
Britannia Industries | | 16.22 | | 0.15 | | 28.97 | | 23.26 | | 14.78
| |
Castrol India | | 6.42 | | 0 | | 44.28 | | 43.7 | | 22.08
| |
Colgate-Palmolive | | 18.4 | | 0.02 | | 57.83 | | 56.56 | | 258.61
| |
Container Corpn. Of India | | 15.94 | | 0.13 | | 25.78 | | 24.31 | | 18.37
| |
Crisil | | 29.71 | | 0 | | 23.28 | | 23.28 | | 45.76
| |
Cummins | | 16.44 | | 0.05 | | 20.96 | | 20.45 | | 34.82
| |
Dabur | | 18.04 | | 0.37 | | 37.91 | | 32.53 | | 35.48
| |
FDC | | 13.86 | | 0.03 | | 23.12 | | 22.4 | | 16.53
| |
GAIL | | 13.81 | | 0.43 | | 21.77 | | 17.26 | | 16.78
| |
GSK Consumer Healthcare | | 8.5 | | 0 | | 22.71 | | 21.87 | | 12.99
| |
Gujarat Gas Co. | | 23.91 | | 0 | | 29.25 | | 22.33 | | 20.87
| |
Hero Honda | | 27.8 | | 0.06 | | 48.45 | | 43.41 | | 30.57
| |
Hindustan Unilever | | 7.85 | | 0.17 | | 73.23 | | 63.19 | | 62.99
| |
ITC | | 17.34 | | 0.05 | | 26.21 | | 24.61 | | 22.36
| |
Infosys | | 34.02 | | 0 | | 35.32 | | 35.32 | | 27.63
| |
Marico | | 19.75 | | 2.18 | | 35.97 | | 25.68 | | 20.57
| |
Navneet Publications | | 11.12 | | 1.1 | | 23.59 | | 19.66 | | 18.38
| |
Nestle | | 18.2 | | 0 | | 83.11 | | 77.41 | | 125.19
| |
Pidilite Industries | | 19.77 | | 3.81 | | 22.41 | | 17.27 | | 16.62
| |
P&G Hygiene & Health Care | | 12.14 | | 0 | | 40.07 | | 39.96 | | 24.74
| |
Siemens | | 39.37 | | 0 | | 29.49 | | 29 | | 20.71
| |
Sun Pharmaceutical Inds. | | 29.54 | | 0.02 | | 27.82 | | 22.21 | | 34.23
| |
Tata Elxsi | | 19.44 | | 0.23 | | 39.82 | | 35.99 | | 36.17
| |
Torrent Pharmaceuticals | | 14 | | 2.61 | | 20.73 | | 15.35 | | 23.29
| |
Unichem Laboratories | | 22.85 | | 0.2 | | 24.51 | | 19.59 | | 26.09
| |
Wipro | | 31.3 | | 1.69 | | 29.23 | | 27.31 | | 23.9
|  |
| |