Quantitative analysis of stocks

hello friends,

i have done quantitative analysis of 23 companies majority of which we discuss here regularly. i have given them rankings based on different parameters. i dont know up to what extent it can be useful in investment decisions since it doesnt include management quality and certain other qualitative parameters. i invite your comments and suggestions regarding utility of such analysis and to make it more comprehensive.


p/e p/b div yield roe sales grw(5yr avg profit grw(5yr avg mcap d/e div payout total
muthoot finance 21 23 23 17 22 17 23 3 17 166
thangamayil jewellery 23 19 20 20 23 23 18 4 15 165
mayur 13 4 12 23 19 21 15 17 14 138
wim plast 15 16 11 8 15 22 19 21 9 136
ashiana housing 22 21 10 18 17 20 17 6 2 133
atul auto 17 15 18 11 6 13 21 15 16 132
balmer lawrie 19 20 22 10 3 3 10 20 21 128
vst tillers 18 18 14 16 13 7 16 13 10 125
jkbank 20 22 19 3 7 6 2 23 13 115
grp 16 14 15 14 10 4 20 6 11 110
supreme industries 7 3 16 22 9 18 4 8 20 107
vst industries 2 1 21 21 5 5 6 19 23 103
cravatex 6 7 5 12 12 19 22 5 6 94
shriram trans 14 13 8 9 18 16 1 2 7 88
nesco 9 9 3 19 4 9 11 22 1 87
amara raja batteries 8 5 6 13 16 10 3 11 12 84
kaveri seeds 11 6 2 6 20 14 9 12 4 84
astral 4 8 1 7 21 15 13 10 3 82
unichem 5 17 13 2 2 2 8 14 19 82
ajanta 12 11 7 4 8 12 12 7 8 81
cera 10 10 4 5 11 11 14 9 5 79
lmw 3 12 17 1 1 1 7 18 18 78
gruh 1 2 9 15 14 8 5 1 22 77

correction: muthoot cap services instead of muthoot finance in above list

Seems like a modified magic formula with 9 variables. Pretty good strategy for choosing growth stocks amongst 10-20 chosen lot. Not very effective in finding value buy, cash bargain, turn-around story, and consistently performing blue-chip though. Also you need to understand the stock story to be able to decide buy-sell decisions.

During initial days of my stock investing I used to do a non-ranked quantitative way of ranking stock by calculating ROCE/PEGY-modified based on P/E ratio, Dividend yield, 3-yr average ROE, ROCE, Cash and Bank Balance, Debt level.