Identify High Growth Stocks - Kundan Kishore

The criteria you've outlined are aimed at identifying mid-cap or larger companies with strong financial health, consistent growth, and efficient use of capital. Here's a breakdown of each condition: Criteria Explained: Market Capitalization > 500 (Crores) Focuses on established companies, avoiding smaller, riskier businesses. Companies above this threshold often have better liquidity and stability. Price to Earnings (P/E) < 15 Suggests the stock is reasonably priced relative to its earnings, making it a potential value pick. Return on Capital Employed (ROCE) > 22% Reflects how effectively the company generates profits from its capital. High ROCE is a sign of operational efficiency and competitive advantage. EPS Growth (3 Years) > 15% Indicates consistent earnings growth over the past three years, suggesting strong business momentum. Debt to Equity (D/E) < 0.5 Highlights a company with low financial leverage, reducing risk during economic downturns. Sales Growth (3 Years) > 10% Demonstrates consistent revenue growth, a key indicator of expanding business operations and market share.

by Pradeep