In the Stocks section of our website, you can access a plethora of stock screener options. Some pertain to the methodologies of legendary investors like Ben Graham and Peter Lynch, among others. There are a few screens that help you to explore various stock ideas like stocks that are at a discount to their book value and quality stocks that are available cheap, among others. Moreover, you can even browse through companies based on their market capitalisation and industry classification. Simply choose the filters you want from the criteria list and you'll get the list of companies that satisfy those criteria.
Now, we could have let you do this on your own. But considering that it is the end of the year, we thought we would help you to get started with a few screens that we like. This could be an awesome New Year present from us.
However, remember that satisfying certain criteria does not necessarily translate into an investment decision. Please conduct proper due diligence before buying into these companies.
Screen #1: Joel Greenblatt's magic formula
Described in his book "The Little Book That Beats The Market", we have adapted it for Indian application. Follow the link for some gems.
Screen #2: Growth at a reasonable price
With a combination of growth and value investing, there is quite an offering available at your disposal.
Screen #3: Absolute quality
This one doesn't have a valuation filter applied but will give you the crème de la crème of companies.
Screen #4: Unloved
Here we have taken companies (with a market cap greater than Rs 1,000 crore) whose EPS has grown by more than 20 per cent over the year but the stock has risen by less than 20 per cent. To remove any creative accounting, we have chosen companies with a modified C-Score of less than 3.
Screen #5: Less than their median P/E
These are companies that are trading at a P/E that is less than their median P/E. To make sure that we do not get a list of duds, we have added two more filters of 5Y average return on equity being more than 15 per cent and of 5Y return on capital employed consistency.
That's all for the time being. We hope you start your New Year with great picks from these or other screens that you create.
Happy New Year and happy investing!!