A super simple way to find good companies

Hi sir ,

Show us with a example of some x y z stock pls

Found this on quora:
Answer · Writer you might like
What are the most undervalued stocks as of Oct 2017?
Tharendra Lunia
Tharendra Lunia, Value Explorer
Answered Oct 25
LONG TERM INVESTMENT FUNDAMENTAL STRATEGY

Enterprise Value is Market Capitalization Add: Debt Less: Non Current Investments

Firm Profits is Net Profit Add: Interest Less : Tax Savings on Interest Less : Other Income

Total Income is Sales Add: Other Income

Firm Margin is Firm Profits divided by Total Income

Enterprise Value to Total Income is Enterprise Value divided by Total Income (below 2 is better)

Enterprise Value to Total Income to Firm Margin is Enterprise Value to Total Income divided by Firm Margin (below 15 is investments friendly)

Historically have observed that company’s with Enterprise Value to Total Income to Firm Margin less than 15 have outperformed the market and also have delivered return over and above 25% annually.

Applying Filter

Enterprise Value to Total Income to Firm Margin <15

AND Market Capitalization >5

AND Market Capitalization <500000

AND Firm Margin >0

AND Net profit >0

AND Return on equity >17

1 - Rural Elec.Corp. CMP INR 156.15

2 - Rajesh Exports CMP INR 805.65

3 - Dewan Hsg. Fin. CMP INR 596.65

4 - Glenmark Pharma. CMP INR 602.95

5 - NLC India CMP INR 95.55

6 - Manappuram Fin. CMP INR 101.05

7 - DCM Shriram CMP INR 517.5

8 - Balrampur Chini CMP INR 164.15

9 - Apar Inds. CMP INR 770.85

10 - Triven.Engg.Ind. CMP INR 96.3

11 - Kwality CMP INR 100.8

12 - GHCL CMP INR 230.15

13 - Dhampur Sugar CMP INR 305.75

14 - Sonata Software CMP INR 172.55

15 - Kama Hold. CMP INR 2800

16 - Geometric CMP INR 262.1

17 - Maithan Alloys CMP INR 597.65

18 - Indian Metals CMP INR 640.3

19 - 8K Miles CMP INR 564.25

20 - Bengal & Assam CMP INR 1844.95

21 - Srikalahas. Pip. CMP INR 365.5

22 - Dalmia Bharat CMP INR 179.2

23 - Dwarikesh Sugar CMP INR 76.7

24 - Kitex Garments CMP INR 213.35

25 - Kiri Indus. CMP INR 508.7

26 - Avadh Sugar CMP INR 1213.15

27 - West Coast Paper CMP INR 182.45

28 - Vardhman Hold. CMP INR 3366.3

29 - Vivimed Labs. CMP INR 125.4

30 - Seshasayee Paper CMP INR 808.55

31 - PNB Gilts CMP INR 49.2

32 - NCL Inds. CMP INR 230.5

33 - Atlanta CMP INR 102.2

34 - Balasore Alloys CMP INR 89.45

35 - Cosmo Films CMP INR 395.5

36 - Allsec Tech. CMP INR 475

37 - Deep Industries CMP INR 216.75

38 - Pokarna CMP INR 216.5

39 - AksharChem (I) CMP INR 757.8

40 - DCM Shriram Inds CMP INR 346.6

41 - Kuantum Papers CMP INR 656.45

42 - Chamanlal Setia CMP INR 105.65

43 - Nitin Spinners CMP INR 116.55

44 - 3i Infotech CMP INR 3.8

45 - Alphageo (India) CMP INR 765.3

46 - Kellton Tech CMP INR 99.95

47 - N R Agarwal Inds CMP INR 273.05

48 - Emami Infra. CMP INR 181.8

49 - NBI Indl. Fin. CMP INR 3197.75

50 - Ruchira Papers CMP INR 171.3

51 - Sakuma Exports CMP INR 204.45

52 - NILE CMP INR 1081.25

53 - Star Paper Mills CMP INR 194.55

54 - Cupid CMP INR 273.2

55 - Kopran CMP INR 69.55

56 - Lycos Internet CMP INR 5.95

57 - PTL Enterprises CMP INR 41.2

58 - Pincon Spirit CMP INR 61.45

59 - Rajratan Global CMP INR 577.65

60 - AYM Syntex CMP INR 63.85

61 - ABM Knowledge CMP INR 123.75

62 - RKEC Projects CMP INR 102.35

63 - Faze Three CMP INR 101.65

64 - Shilpi Cable CMP INR 21.5

65 - Mangalam Drugs CMP INR 149.35

66 - Shreyans Inds. CMP INR 169.7

67 - KM Sugar Mills CMP INR 24.6

68 - Magadh Sugar CMP INR 216.85

69 - Kesar Terminals CMP INR 198.75

70 - Dhunseri Tea CMP INR 272.75

71 - Rajshree Sugars CMP INR 66.45

72 - Indian Acrylics CMP INR 13.81

73 - Innovative Tech CMP INR 83.4

74 - Dynemic Products CMP INR 157.4

75 - Ceinsys Tech CMP INR 170

76 - Sindhu Trade CMP INR 32.4

77 - K G Denim CMP INR 61.15

78 - Stampede Cap. CMP INR 6.8

79 - Keerthi Indus CMP INR 192

80 - InfoBeans Tech. CMP INR 62.5

81 - Kanpur Plastipa. CMP INR 122.95

82 - Cambridge Tech. CMP INR 72.2

83 - Satia Indust. CMP INR 135.3

84 - Prime Securities CMP INR 47.3

85 - SSPDL Ltd CMP INR 94.9

86 - Lypsa Gems CMP INR 38.2

87 - Pincon Lifestyle CMP INR 36.05

88 - Fourth Dimension CMP INR 46.9

89 - Baid Leasing CMP INR 99.75

90 - Bharat Immunolog CMP INR 22.5

91 - Apollo Sindoori CMP INR 746.25

92 - SNL Bearings CMP INR 264.85

93 - Indian Sucrose CMP INR 58.55

94 - Sphere Global CMP INR 44.1

95 - Vedavaag Systems CMP INR 52.9

96 - Thakkers Develp. CMP INR 77.9

97 - Total Transport CMP INR 45

98 - Jet Freight CMP INR 117.5

99 - Prime Urban CMP INR 22.3

100 - Global Education CMP INR 230

101 - COSYN CMP INR 73.85

102 - Raghuvansh Agro. CMP INR 45

103 - Malu Paper CMP INR 30.65

104 - TAAL Enterprises CMP INR 162.2

105 - Shalibhadra Fin. CMP INR 100.75

106 - Jiya Eco-Product CMP INR 45.75

107 - Wealth First Por CMP INR 75

108 - Shree Ganesh Bio CMP INR 260.3

109 - Hind.Adhesive CMP INR 88

110 - Incap CMP INR 84.15

111 - Sh. Krishna Pap. CMP INR 31.4

112 - Sh. Karthik Pap. CMP INR 21.05

113 - Sysco Indust. CMP INR 45.25

114 - Focus Lighting CMP INR 103.5

115 - Ganga Papers CMP INR 30.45

116 - Sharda Ispat CMP INR 63.6

117 - Ladderup Finance CMP INR 23

118 - DRA Consultants CMP INR 25.9

119 - Univastu India CMP INR 46

120 - Elixir Capital CMP INR 40.95

121 - Swasti Vin. Art CMP INR 5.24

122 - Accord Synergy CMP INR 55

123 - Citadel Realty CMP INR 52.95

124 - Bluechip Tex Ind CMP INR 88.95

125 - 7Seas Enter. CMP INR 14.94

126 - Jattashankar Ind CMP INR 37.75

127 - Cil Securities CMP INR 32

128 - Rammaica (India) CMP INR 16.64

129 - Refnol Resins CMP INR 43.05

130 - KKV Agro Powers CMP INR 360

131 - Gothi Plascon CMP INR 11.92

132 - Surevin BPO CMP INR 33.5

133 - Pooja Entertain CMP INR 21.75

134 - P. H. Capital CMP INR 35

135 - Apis India CMP INR 17.7

136 - South. Magnesium CMP INR 31.7

137 - Dhanalaxmi Roto CMP INR 23.6

138 - Sanrhea Tech. CMP INR 28.55

139 - Husys Consulting CMP INR 35

140 - Chemo Pharma Lab CMP INR 44.9

141 - Thakral Services CMP INR 5.69

Seniors may please deliberate and throw some light.

5 Likes

Would it be possible for you to elaborate on this and give me exact query. I am relatively
new to the forum

Could you also post similar screen for Jan 2018. Just to confirm whether I am on the right track.

Hi @abhayamrite

I have posted the relevant screener query in an earlier post on the same thread

1 Like

Thank Bheeshma for quick response. Will I try and locate it. Just to reiterate I was referring to operating profits/ assets. (net of cash and Investments)

Cash from operations last year /Balance sheet total >=0.20 AND
Market Capitalization >0

or you can click this link

https://www.screener.in/screen/raw/?query=Cash+from+operations+last+year+%2FBalance+sheet+total+>%3D0.20+AND Market+Capitalization+>0&latest=true

4 Likes

any back tested results for the same query

1 Like

Thanks for your reply.

Here it goes Screener new sc.xls.xlsx (11.9 KB)

@bheeshma

Could you please explain what ‘Balance Sheet Total’ means?

I am running following query. But I am getting very different results. Can you assist as to where the error is.

Cash from operations last year /Balance sheet total >=.20 AND
Debt to equity <1.5 AND
Return on equity >10 AND
Market Capitalization >0 AND
Market Capitalization <1000

@eyesice

Balance sheet total is Total assets. Thats how its depicted in screener.

2 Likes

@bheeshma Trying to understand this conceptually - your screen outputs (cash) return on assets, doesnt it? So, if companies are in capex phase, say a Jio, they will have a low value on this formula. Many a time, I use the opposite to get an idea of operating leverage runway. Trying to reconcile between efficient utilization of assets and fresh underutilized ones.

1 Like

Yes - its just an exploration tool. As i have learnt i have found better methods. However this method is amongst the better ones in my view.

You can do better. Much better.

1 Like