Stock Ideas

Buffett-like spread of Indian stocks

Here we have offered a selection of

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


Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories