METHOD

In this section, we will try to find stocks to invest for the long term using filters.

These filters will automatically filter out the top 10 stocks from a list of more
than 6000 stocks included in the BSE and NSE.

FILTERS

Now let’s take a look at each of the filters one by one and how to apply these
filters to select our stocks.

1) Go to screnner.in
2) Create an account there (it’s free)
3) Go to the top bar and click on the “+” tab. (Create new screen)
4) This is where we will enter our specific criteria to select stocks.
5) See below how to enter specific filters.

1. MARKET CAPITALIZATION

Market capitalization, commonly called a market cap, is the market value of a

publicly-traded company's outstanding shares.

Market capitalization is equal to the share price multiplied by the number of

shares outstanding.

*We prefer companies having at least 7000 crores of market capitalization.

*To apply this filter type in “query box” - Market Capitalization >10 AND
2. SALES GROWTH

The amount by which the average sales volume of a company's products or

services has grown, typically from year to year.

*We prefer the sales growth to be more than 10% in the last 10 years.

*To apply this filter type in “query box” - Sales growth 10Years >10 AND
3. RETURN ON CAPITAL EMPLOYED (ROCE)

Return on capital employed (ROCE) is a financial ratio that measures a

company's profitability and the efficiency with which its capital is used. In
other words, the ratio measures how well a company is generating profits
from its capital.

*We prefer the average of ROCE to be more than 10% in the last 15 years.

*To apply this filter type in “query box” - Average return on capital employed
10Years >15 AND

4. PROMOTER HOLDING

Promoter holding signifies the percentage of shares that are held by the
promoters of a company. Promoters and promoter groups are entities that
have a significant influence on a company. They may have a major or even a
controlling stake in the company and may also held senior executive
positions.

If the promotor is increasing his stake, it shows his confidence in the

company and vice-versa.

*We prefer Promoter holding to be at least 30%.

*To apply this filter type in “query box” - Promoter holding >30 AND

5. RETURNS

Return simple means the loss or gain the share/security has generated over a
period of time.

It is the appreciation/depreciation of the share price over a period of time.

*We prefer returns to be more than 17% in the last 10 years. 17% is the
average return of nifty.

*To apply this filter type in “query box” - Return over 10years >17 AND.

*Don’t type “AND” in the last filter.

NOW RUN THE THIS QUERY

*After running this query, you will get a list of shares.

*Now we want to rank these shares according to its average ROCE in the
past 10 years.

*In the results page, click on “ROCE 10 years average”

*After this, you will get the shares ranked according to its average ROCE in
the past 10 years.
THIS IS OUR LIST OF TOP 10 STOCKS.

1. Nestle India
2. Page Industries
3. Avanti Feeds
4. P & G Hygiene
5. TCS
6. Britannia Industries
7. Eicher Motors
8. Asian Paints
9. GlaxoSmith C H L
10. Abbott India