Kalaivani Pandian Learner, Trader and Programmer. Worked as a Telecom Engineer in the past now a Growth Hacker @marketcalls. Interested in Quant strategies and Trading Analysis Softwares.

Top 5 Fundamental Screeners Every Indian Investor Should Know

4 min read

What is stock screening?

Stock screening is a process of filtering stocks based on certain criteria used by investors and traders to screen better stocks from the pack of stocks/sectors. Most Screeners provides ratings, metrics and even rule based scanning which eases out the investing decisions. While taking a investing decision some prefer fundamental screener , some prefer technical screener and the rest prefers using both in a combo to filter out better stocks that met their criteria. This article explores the popular fundamental screeners used widely in Indian markets actively by Indian traders and investors.

Stock screening doesn’t helps a user to predict the movement of the stock in any direction instead it helps in identifying good stocks and the ability to compare a stock with its peers. One was doing screening manually before,but now stock web based screeners helps the users a lot and plays a major role in taking buy/sell decisions.

Generally stock screener has three basic components:

  1. database of companies
  2. set of variables/rules
  3. screening platform to find the companies that satisfies the variables/conditions

Let us see about the top five fundamental stock screeners

1.MoneyWorks4me

MoneyWorks4me provides Value Indicators,Promoters stake and price pointers as type of screeners, Compeer and MoneyWorks4me Filter.Selection is indicated in color codes.They are as follows:

  • Green : Very good
  • Yellow : Somewhat good
  • Red : Not good

Screeners:

Value Indicators – screens stocks with highest & lowest value creation index as Value generators and value destroyers respectively with respect to their capital for the past .

Moneyworks4me value generators

The above figure illustrates Colgate Palmolive, Hindustan Unilever, Castrol India from the large cap are the three which tops the value generators list

Moneyworks4me value destroyers

For Tata power,DLF & JP associates value creation index falls in negative taking past three years into account.

Movers & shakers – screens stocks with respect to the promoters stake in the last quarter compared to the previous quarter as promoters expand(increase in stake) and promoters diminish(decrease in stake)

Moneyworks4me promotors expand

From the above figure let us take vaibhav global as an example, we can find there is 13.15% increase in promotors stake.

Moneyworks4me promotors diminish

In the above figure Balaji Hindustan Sugar met a decline in promotors stake of 21.9% compared to the previous quarter

 
Price pointers – Screens stocks with respect to their P/Es and price. When stocks have low P/Es and sounds well it is filtered as Healthy & Affordable and if stocks have high P/Es weak it is filtered as Weak & Pricey

Moneyworks4me healthy

For Indian bank P/E ratio ends up with a good and healthy value of 6.61

Moneyworks4me week

The above figure shows stocks which are fundamentally weak & having high P/E ratios.

MoneyWorks4me Filter – Helps to analyse stocks fundamentally in each and every aspect. MoneyWorks4me Filter reveals whether a stock chosen by a user is a right stock,right price and right timing with respect to the 10 year X-ray report.

Moneyworks4me filter

The figure tells us about whether one can choose a particular stock on 10 years report,valuation and research reports with the help of latest financials.

2.Capital Cube

Capital Cube,one of the largest providers of company analysis is the research platform from AnalytixInsights covering more than 40,000 global equities. Analysis includes the following major factors such as fundamental research, corporate actions, earnings quality, dividend quality and equity screening solutions. Capital Cube helps customers to spent less time in tracking down the data and gathering information and valued time on investment potential and opportunities.

The below figure shows how telecommunication stocks are screened with the fundamental analysis score between 10-84 and one month price performance upto 33.06%.

capitalcube screen

Let us make a study on ICICIBANK under BSE exchange

capitalcube summary

Figure above shows the overall summary with chart

capitalcube screens of trends

Trends of ICICI Bank w.r.t to price

capitalcube keyvalues

Characteristics and Price history

3.Screener.in

Screener.in is a stock analysis and a screening tool to see all the information of a company on a single and customizable page. The Bull Cartel, Growth Stocks, Loss to Profit Companies, Magic Formula, Piotroski Scan and Highest Dividend Yield are the featured screens given by screener.in. Apart from the featured screens users can design their own screens based on their standard and strategy. Email alerts are also enabled for the customer screens. If customer’s criteria is met they will get an Email.

The Bull Cartel : screens stocks of best quarterly results. The figure reveals ICICI bank performed well in the recent quarter.

screener bull cartel

Growth Stocks : Helps to find stocks with high growth potential and strong financials

screener growth stocks

From the figure one can choose BN Rathi securities, as it shows a growth factor of 9 & P/E ratio of 4.92

Loss and Profit Companies : Helps to screen companies which showed a good turnover and quarterly results from loss to profit. Ashok Alco-chemicals produced 927.08% of YOY quarterly profit growth

screener loss profit

Magic Formula : Helps to screen stocks which beats the market’s average annual returns. Applying magic formula, Sagar cements earnings yield has been declared as 50.41%.

screener magic formula

Piotroski Scan : Piotroski score between 0-9 will be decided from the nine criteria to determine the company’s financial position. A stock is said to be a best stock if it holds piotroski score of 9. Piotroski score is determined under the three major categories:

  • Profitability
  • Leverage,Liquidity and source of funds
  • Operating Efficiency

Piotroski score for Tata Communication Limites, Zenith Exports & Siyaram’s Silk Mills Limited are 9 which in turn reveals that these are best stocks with strong financial positions

screener piotroski scan

Highest Dividend Yield : Helps to screen stocks based on dividend paid out on highest yield. Indiabulls Ventures Limited tops the Highest dividend yield shares with 10.22% dividend yield.

screener highest dividend yields

4.Stockflare

Stockflare helps to find the stocks for investor’s portfolio. Through hundreds of metrics for more than 40,000 stocks globally and every stock is rated. Stocks are rated on certain factors such as Market Value, investing style, Business Metrics and valuation. Checkout our review on stockflare fundamental screener

Market Value : Here stocks are rated as market value high to low, low to high, Price value high to low and viceversa as well star rating.

Investment Style : Investment style based on factors – good value,high growth, high quality, market sentiment, momentum, 52 week high-low.

Business metrics : Business metrics are decided by the factors such as company’s capitalization, profit, Growth, dividends paid to shareholders, cash & investments.

Valuatoin : Valuation is estimated with the factors like PE Ratio under 10x, Dividend yield over 4x, trading below book value, less than 1x sales, less than 7x operating profit.

stockflare 5 star stocks

The above figure shows the five star rated Indian stocks

stockflare positive momentum

Stocks which possess positive momentum i.e. trading above 10 day average are shown in the above figure

Let us see how Tata Power has been rated

stick flare tata

stockflare 1

stock 2

5.Equity Boss

Equity Boss is an investment discovery and analysis platform that makes investment decision simple for investors.Equity Boss gives grades after using a accurate indicator to know whether the stock outperforms the market consistently, backtested for years and proved to be good correlation, quantitative comparison among financials.

Stock ratings or EB Grades:

  • Excellent – potential outperformer
  • Good – market performers
  • Poor – underperformers

Let us see Motherson sumi’s performance according to the Equity Boss in the following figures:

equityboss fundamentals

Equity Boss grade for Motherson Sumi

Equity Boss gives excellent for Motherson sumi after some actionable insights, backtesting and powerful screening.

equityboss momentum

Momentum of Motherson Sumi

The figure shows motherson sumi is in bullish mode according to EMA and also the price zone

equityboss complaints

Shari’ah of Motherson Sumi

equityboss seasonal odds

Seasonal Returns

equityboss financials

Annual Returns

From the above figure Motherson sumi made a YOY net profit of 143.35% for the financial year Mar 2014.

Hope you get useful insights about the popular fundamental screeners for Indian Markets. Next time do catch you up with interesting insights.

Kalaivani Pandian Learner, Trader and Programmer. Worked as a Telecom Engineer in the past now a Growth Hacker @marketcalls. Interested in Quant strategies and Trading Analysis Softwares.

Tijori Finance – Better Fundamental Data Analysis using Alternative…

Tijori Finance a sleek design portal to access in-depth data such as market share, revenue break-up, location exposure, operational metrics shareholding & financial on...
Rajandran R
1 min read

Tick Data Vendors and Quality of Tick Datafeeds

Last coupe of weeks we spend our energy in understanding the quality of the datafeeds(Indian & International vendors) for NSE Futures. Since data is...
Rajandran R
1 min read

Nifty PE Ratio Analysis – Are we at the…

PE – Ratio a simple metric used to measure the valuation of the market. From the numbers one can understand whether the markets are...
Rajandran R
1 min read

25 Replies to “Top 5 Fundamental Screeners Every Indian Investor Should Know”

  1. Very interesting article. .would also like some information on technical side of screener or back testing software

  2. Hats off to Kalaivani ji.
    Very useful article. We want more diamonds like this from the treasure of MARKETCALLS, RAJ dear.

  3. Worth to read this article, it can help the first time investors. Please do share your thoughts with me through mail.

  4. Hey Kalaivani,
    Wonderful list of screeners. I am stock picker at gale, an Indian Stock Market blog, Free trading calls and Investment ideas.

  5. Very informative article Kalaivani, and reading was very useful to me. Do notify me of new posts.

  6. Thanks sir for sharing these valuable information, I am using moneycontrol.com to manage my portfolio, now I want to actively invest in share market and need help in finding best platform which summarized some valuable information. I was digging through quora and found investello.com which give tips and advice on stock investment. If someone give some insight on this software it would be helpful to me.

    1. I also use investello.com and so far I am satisfied with its service. The site is fast and presents the information effectively.

  7. Excellent field work with details provided. Keep sharing such innovative articles.

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More