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    Investment Criteria

    Uploaded by

    Manisha Mazumdar
    The document outlines eight filters for evaluating investment criteria. Filter 1 focuses on companies with average fundamentals but positive momentum in sales, profit growth, earnings per share, and return on equity. Filter 2 examines high-growth companies with strong returns. Filter 3 assesses continuous yearly growth. Filter 4 evaluates debt reduction and sales growth. Filter 5 considers leverage ratios. Filter 6 analyzes increasing profit margins over time. Filter 7 looks at companies with high promoter holdings and low equity. Filter 8 prioritizes expanding asset bases. The filters provide a framework for analyzing companies based on financial metrics and growth trends.

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    Investment Criteria

    Uploaded by

    Manisha Mazumdar
    12 views3 pages
    The document outlines eight filters for evaluating investment criteria. Filter 1 focuses on companies with average fundamentals but positive momentum in sales, profit growth, earnings per share, and return on equity. Filter 2 examines high-growth companies with strong returns. Filter 3 assesses continuous yearly growth. Filter 4 evaluates debt reduction and sales growth. Filter 5 considers leverage ratios. Filter 6 analyzes increasing profit margins over time. Filter 7 looks at companies with high promoter holdings and low equity. Filter 8 prioritizes expanding asset bases. The filters provide a framework for analyzing companies based on financial metrics and growth trends.

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    Investment criteria

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    The document outlines eight filters for evaluating investment criteria. Filter 1 focuses on companies with average fundamentals but positive momentum in sales, profit growth, earnings per share, and return on equity. Filter 2 examines high-growth companies with strong returns. Filter 3 assesses continuous yearly growth. Filter 4 evaluates debt reduction and sales growth. Filter 5 considers leverage ratios. Filter 6 analyzes increasing profit margins over time. Filter 7 looks at companies with high promoter holdings and low equity. Filter 8 prioritizes expanding asset bases. The filters provide a framework for analyzing companies based on financial metrics and growth trends.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    12 views3 pages

    Investment Criteria

    Uploaded by

    Manisha Mazumdar
    The document outlines eight filters for evaluating investment criteria. Filter 1 focuses on companies with average fundamentals but positive momentum in sales, profit growth, earnings per share, and return on equity. Filter 2 examines high-growth companies with strong returns. Filter 3 assesses continuous yearly growth. Filter 4 evaluates debt reduction and sales growth. Filter 5 considers leverage ratios. Filter 6 analyzes increasing profit margins over time. Filter 7 looks at companies with high promoter holdings and low equity. Filter 8 prioritizes expanding asset bases. The filters provide a framework for analyzing companies based on financial metrics and growth trends.

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    of 3

    Investment Criteria

    Base criteria

    Debt to equity < 2

    Pledged percentage < 10%

    Promoter holding > 40%

    Market Capitalization > 10000

    Filter 1: Average fundamentals but momentum

    YOY sales growth > 5%

    YoY PROFIT GROWTH > 15%

    EPS > 0 (Company must be profit making)

    ROE > 15%

    CURRENT PRICE > 0.9*HIGH PRICE

    FILTER 2 : - Growth investing

    COMPANIES WITH HIGH ROE HIGH PROFIT GROWTH

    3 YEARS SALES CAGR > 15%

    3 YEARS PROFIT CAGR > 10%

    ROE > 30%

    FILTER 3 :

    COMPANIES WITH CONTINUOSE GROWTH

    YOY SALES GROWTH > 5%

    YOY PROFIT GROWTH > 10%

    QOQ SALES GROWTH > 3%

    5 YEARS SALES CAGR > 15%

    5 YEARS PROFIT CAGR > 10%

    AVERAGE ROE 5 YEARS > 15%

    OPM > 15%

    AVERAGE ROCE 5 YEARS > 15%

    ROCE >15%
    Filter 4: Debt reduction with growth:

    Debt / Equity < 0.25

    Debt < Debt 3 years back

    Debt 3 years back < Debt 5 years back

    Sales growth > 10

    Sales growth 3 years CAGR > 5

    ROE > 10

    Filter 5: Leverage:

    Debt / Equity > 1

    Debt / Equity < 3

    Change in promotor holding >= 0

    ROE > ROE over last 3years

    ROCE > Average ROCE 3 years

    EPS > 0

    Interest coverage ratio > 2

    Filter 6: Continuous growth in profit margin

    OPM >1.25 * OPM preceding year

    OPM > 1.25 * OPM last quarter

    EPS > 0

    Filter 7: Low equity

    Promoter holding > 49

    ROE > 10

    ROCE > 15

    EPS> 0

    Equity capital < 50

    Sales growth > 3%


    Profit growth > 5%

    Market cap > 5000 (relax market cap criteria here can be relaxed)

    FII holding > 0

    Change in DII > 0

    Filter 8: Asset base increasing

    Net block > Net block 3Years back

    Return on equity > 5

    Return on capital employed >10

    EPS>0

    Market Capitalization > 10000

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