Screener Conditions (Entry 3)
Condition 1
Annual Market Capitalization (₹ Crore) > 20,000
Condition 2
Annual Price-to-Earnings (PE) Ratio < 20
Condition 3
((Latest Annual Total Revenue – Revenue from 3 Years Ago) / Revenue from 3 Years Ago) > 0.15
(Revenue Growth of at least 15% over 3 years)
Condition 4
Latest Annual Book Value Per Share < (Latest Daily Close × 1.05)
(Stock is trading within 5% of its book value, indicating fair/undervalued pricing)
Logic Behind Choosing These Conditions
This screener is designed to pick fundamentally strong companies with:
Large market presence
Healthy earnings valuation
Consistent revenue growth
Attractive pricing relative to book value
Here’s the reasoning for each condition:
1. Market Cap > ₹20,000 Cr
This ensures the screen includes only large-cap companies that are:
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Financially stable
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Less volatile
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Have strong institutional backing
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Capable of withstanding macro-economic shocks
Large caps reduce risk and provide more reliable long-term performance.
2. PE Ratio < 20
A PE below 20 generally indicates:
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The company is not overpriced,
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You are not overpaying for its earnings,
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Better margin of safety for investors.
This avoids overvalued companies and helps focus on reasonably priced businesses.
3. Revenue Growth > 15% (3-year growth)
This identifies companies with real business expansion.
You pick companies that are:
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Growing consistently,
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Increasing demand for their products/services,
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Scaling operationally,
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Likely to compound earnings in future.
This filter ensures you invest in companies with sustained long-term growth momentum.
4. Book Value Per Share < Price × 1.05
This ensures the stock is:
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Fairly valued
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Near its intrinsic worth
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Has limited downside risk
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Potentially offers undervaluation opportunities
If the market price is close to the company’s book value, it typically signals value investing opportunities.
Backtest Results (Based on 100 Daily Candles)
Best Performing Sector:
Non-Ferrous Metals
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Best Holding Period: 15 days
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Average Return: 2.89%
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Win Rate: 83.72%
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Risk–Reward Ratio: 1 : 1.20
This sector showed strong short-term consistency and stable returns, making it a strong pick in this screener.
Avg. Returns vs Win Rate (Scatter Plot Insight)
The plot highlights:
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SHRIRAMFIN → Highest average returns among screened stocks
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SBIN & HINDALCO → Excellent win rate + stable performance
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AXISBANK → Moderate returns with decent win consistency
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Tata Motors Passenger Vehicles (TMPV) → Positioned lower, weaker performance
Stocks in the top-right quadrant deliver both strong returns & high consistency — ideal for swing or positional strategies.
Stock Performance Across Holding Periods
Strong performers (Positive slope across periods):
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SBIN – consistent green slope
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HINDALCO – steady positive trend
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AXISBANK – improving returns over time
Weak performers (Red, declining trend):
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COALINDIA
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ITC (downward drift across timeframes)
This gives a clear sector and stock-wise breakdown to identify stable, momentum-backed picks.
