Ticker
ROE (5y) ROCE (5y)Debt/Equity FCF 3y EPS 5y CAGR
Example: T>15%
>15%
<0.5
Posi ve
>10%
P/E
P/B
Industry-al<3
Short answer: I can’t run a live screen here, but below is a ready-to-run, high-precision screening workflow (with thresholds and a
Screening logic (apply in this order for speed and signal quality)
1. Universe: NIFTY 500 cons tuents.
2. Quality filters (must pass all):
- ROE (5-yr avg) ≥ 15% — indicates durable capital returns.
- ROCE (5-yr avg) ≥ 15% — confirms efficient capital use.
- Free Cash Flow (3-yr cumula ve) > 0 and growing — real cash genera on.
- Debt/Equity ≤ 0.5 (industry excep ons for u li es/infra).
3. Stability filters (any 2 of 3 required):
- EPS growth (CAGR 5-yr) ≥ 10%
- Opera ng margin stable or improving
- Earnings vola lity (std dev of EPS) low
4. Valua on sanity checks (final screen):
- P/E ≤ 1.5 × industry median or PEG between 0.5–1.5 (if growth posi ve).
- P/B reasonable vs asset intensity
5. Governance & ownership:
- Promoter holding > 25% and no significant pledged shares; rising ins tu onal ownership is a plus.
6. Qualita ve moat check: brand, network effects, switching costs, patents, distribu on reach.
Why these rules: ROE/ROCE + FCF iden fy compounding businesses; debt and stability filters reduce bankruptcy/earnings-shock r
Compact comparison table (columns to return for each passing stock):
Ticker | ROE (5y) | ROCE (5y) | Debt/Equity | FCF 3y | EPS 5y CAGR | P/E | P/B
Example: TCS | >15% | >15% | <0.5 | Posi ve | >10% | Industry-aligned | <3
Sample conserva ve shortlist (typical long-term quality names from NIFTY 500):
These are examples that historically meet many of the quality filters and are good star ng points to run the screen: HDFC Bank, IC
Next steps I recommend:
- Run the above screen in your preferred screener (NSE CSV, Screener.in, Moneycontrol, Bloomberg, or your brokerage). Use the
- Validate 3 recent quarters for any passers to rule out one-off distor ons.
- Check promoter pledging and FCF conversion before final selec on.
Risks & caveats:
- Sector cycles can make ROE/ROCE temporarily misleading; adjust thresholds by sector.
- High growth small caps may fail ROE/ROCE but s ll be valid—treat separately.
(with thresholds and a one-page results table format) you can apply to the NIFTY 500 to get a long-term buy
uptcy/earnings-shock risk; valua on checks prevent overpaying.
e screen: HDFC Bank, ICICI Bank, Kotak Mahindra Bank, TCS, Infosys, HCLTech, Asian Paints, Nestle India, Baja
ur brokerage). Use the table format above to export results.
yable list; I also include a conserva ve sample shortlist of names that typically pass these filters. The NIFTY 5
aj Finance, Reliance Industries. Verify current metrics before buying.