Beekay' Screener

This is a set of criteria often used in **fundamental analysis to screen for high-quality, growing companies with strong management and attractive valuations.** Let's break down each component: * **YOY Quarterly Sales Growth > 15%:** * **YOY (Year-over-Year):** Compares the current quarter's sales to the same quarter in the previous year. * **Meaning:** This indicates that the company is experiencing significant top-line growth. A 15% growth rate is considered strong and suggests increasing demand for its products or services. * **YOY Quarterly Profit Growth > 20%:** * **Meaning:** This signifies that the company is not only growing its sales but also expanding its profitability at an even faster rate (20% vs 15% sales growth). This suggests good cost management and operating leverage. * **Net Profit Latest Quarter > 1:** * **Meaning:** This simply means the company was profitable in its most recent quarter. It screens out companies that are currently operating at a loss. The ">1" likely implies a positive number, perhaps in the millions or a significant unit, depending on the currency. * **Promoter Holding >= 50:** * **Promoter Holding:** Refers to the percentage of shares held by the founders or original owners of the company and their related entities. * **Meaning:** A high promoter holding (50% or more) is often seen as a positive sign. It suggests that the people who started the company have significant skin in the game and are confident in its future prospects. It can also indicate stable management. * **Change in Promoter Holding >= 0:** * **Meaning:** This means that the promoters have either maintained or increased their stake in the company. A decrease in promoter holding could sometimes be a red flag, as it might suggest they are losing confidence or looking to exit. * **PEG Ratio < 2:** * **PEG Ratio (Price/Earnings to Growth Ratio):** Calculated as (Price-to-Earnings Ratio) / (Earnings Per Share Growth Rate). * **Meaning:** The PEG ratio is a more refined valuation metric than just the P/E ratio, as it takes growth into account. A PEG ratio less than 2 (and ideally less than 1) suggests that the stock is reasonably valued relative to its expected earnings growth. A PEG of 1 means the P/E ratio is equal to the earnings growth rate. * **Sales Growth 7 Years > 25:** * **Meaning:** This looks at the company's long-term sales performance. A 7-year sales growth rate of over 25% (presumably compounded annual growth rate, CAGR) indicates consistent and robust expansion over a significant period. This suggests a sustainable business model. * **Return on Capital Employed (ROCE) > 25:** * **ROCE:** A profitability ratio that measures how efficiently a company is using its capital to generate profits. Calculated as Earnings Before Interest and Taxes (EBIT) / Capital Employed. * **Meaning:** A ROCE greater than 25% is exceptionally good. It signifies that the company is highly effective at deploying its capital to generate strong returns, indicating operational efficiency and a competitive advantage. * **Price to Earning < Industry PE:** * **Price to Earnings (P/E) Ratio:** Market price per share / Earnings per share. * **Industry PE:** The average P/E ratio of other companies operating in the same industry. * **Meaning:** This is a valuation criterion. It suggests that the company's stock is trading at a lower valuation (or at least not a significantly higher one) compared to its peers in the same industry, potentially indicating it is undervalued or fairly valued. **In summary, these criteria collectively describe a company that is:** * **Growing rapidly** (both sales and profits, short-term and long-term). * **Highly profitable and efficient** in using its capital. * **Well-managed** with significant promoter confidence. * **Potentially undervalued or fairly valued** when compared to its growth prospects and industry peers. This type of screening is often used by investors looking for "growth at a reasonable price" (GARP) or even pure growth stocks that also demonstrate strong underlying fundamentals.

by Balakrishna