Indian Stock Screening

Screen Indian stocks for growth opportunities using two analytical lenses. Choose the right lens based on what Joseph is looking for.

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Mode Selection

Lens	When to use	Primary gate
S-Curve	Early growth phase, new tech/policy tailwinds	Revenue CAGR > 20% sustained
Growth Compounder	Margin expansion, market share gains, proven businesses	PAT CAGR > 20% sustained

Quick rule: If Joseph says "find S-curves" → use S-Curve mode. If he says "find compounders" or "no real S-curves in India" → use Growth Compounder mode. If unsure, ask.

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S-Curve Mode

S-Curve Stock Screening

When to use

When Joseph asks to find S-curve (early growth phase) Indian stocks in a sector, evaluate them beyond PE ratio, or create domain-specific watchlist notes. This is the growth-sleeve companion to the dividend-focused indian-stock-analysis skill.

Workflow

1. Read the framework

Always start by reading /opt/data/wiki/wealth/invest/research/s-curve-sectors/s-curve-framework.md — the 7-point checklist, scoring system, and allocation rules are defined there.

2. Identify companies in the sector

Use Screener.in's peer comparison feature (navigate to any company in the sector → Peers tab) to get the full list. Also search for sector-specific screens.

3. Pull Screener.in data for each company

Navigate to https://www.screener.in/company/{TICKER}/consolidated/ or the standalone page if consolidated isn't available. Extract key metrics:

From the overview snapshot:

• Current Price, Market Cap, Stock P/E, Book Value, Dividend Yield, ROCE, ROE
• Pros and Cons (AI-generated — use as clues, not conclusions)

From browser_console (use scripts/extract_screener_data.js from indian-stock-analysis skill):

• Annual P&L: Sales, PAT, OPM, EPS for last 5-10 years
• CAGR tables: Sales growth, Profit growth, Stock price growth
• Balance Sheet: Equity, Reserves, Borrowings, Total Assets
• Cash Flow: CFO, FCF, CFO/OP
• Ratios: Debtor Days, Inventory Days, Working Capital Days, ROCE trend
• Shareholding: Promoter, FII, DII trends

4. Apply the 7-point S-curve framework

For each candidate, compute:

1. Revenue Growth Quality — 3Y and 5Y CAGR + TTM trend

2. Market Penetration — company revenue ÷ estimated TAM

3. Operating Leverage — OPM trend over 3 years

4. PEG Ratio — PE ÷ lower of 3Y and 5Y PAT CAGR. Flag divergence >500 bps as growth deceleration.

5. Earnings Quality — CFO/PAT ratio and trend

6. Capital Allocation — ROCE trend, D/E, promoter pledge, dilution

7. Smart Money Signal — promoter/FII/DII holding trends

Score each 1-10 and compute weighted total.

5. Write the domain watchlist

File: /opt/data/wiki/wealth/invest/research/s-curve-sectors/s-curve-{sector-slug}.md

Structure:

• Sector Thesis — structural tailwinds, penetration %, TAM estimate
• Company Overview Table — all companies with key metrics at a glance
• Detailed Analysis — per company with narrative, numbers, concerns
• Summary Ranking — ranked table with verdict (DEEP DIVE / WATCH / PASS)
• Next Steps — which to analyze deeply, which to track, which to discard
• Historical Snapshots — dated entries for each review

6. Assign verdicts

• 🟢 DEEP DIVE — run full analysis using indian-stock-analysis skill
• 🟡 WATCH — track quarterly, wait for trigger
• ⚪ NOT S-CURVE — good company, wrong strategy bucket
• 🔴 PASS — disqualifying issues

7. Update watchlist

Add a section to /opt/data/wiki/wealth/invest/research/watchlist.md under a new ## S-Curve Growth Sleeve section, linking to each domain watchlist.

Key metrics for S-curve (different from dividend framework)

Metric	S-Curve	Dividend
Primary metric	Revenue CAGR	Dividend Yield
Valuation anchor	PEG ratio	P/E vs history
Cash flow check	CFO/PAT > 0.8	CFO covers dividend 1.5x+
Debt tolerance	Can have debt if ROCE > cost	Should be low or declining
Exit trigger	Revenue growth deceleration 3+ quarters	Dividend cut
Holding period	3-5 years	Indefinite

Pitfalls

1. Defense order lumpiness — revenue can swing 50%+ QoQ. Look at annual/TTM trends, not quarterly.

2. PE is misleading — don't reject a stock solely because PE > 50. Check if PEG < 1.5.

3. Promoter selling is a hard stop — in growth companies, promoters selling >5% in a year is disqualifying unless there's a clear non-worrying reason (e.g., IPO lock-in expiry with partial sell-down).

4. TTM growth can be misleading — a single large order can spike TTM. Verify with order book and multi-year CAGR.

5. Screener.in consolidated vs standalone — some companies only have standalone data. Note which you're using.

6. Currency — all in ₹ Crores. Don't mix.

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Growth Compounder Mode

Indian Growth Compounder Screening

When to use

When the user asks to find Indian growth / compounding companies rather than strict early-phase S-curve plays, or says there are "no real S-curves in India." This is the pragmatic alternative to the S-curve scorecard (see merged into this skill).

Origin (2026-08): the investor rejected the strict S-curve framing, arguing India's growth names are mostly (a) penetration/cyclical, (b) margin-led, or (c) market-share — none fit the clean "sub-15% penetration + >20% revenue CAGR" archetype. Forcing everything through it discards good compounders. Use this lens instead.

Core thesis: compounder ≠ S-curve

A growth compounder is distinct from an S-curve stock:

Dimension	S-curve	Growth Compounder
Primary gate	Revenue CAGR > 20% sustained	Earnings (PAT) CAGR > 20% sustained
Growth source	New market penetration	Margin expansion, market share, mix shift
Valuation anchor	PEG (still important)	PEG (still important)
Quality bar	ROCE > 15%	ROCE > 15%, ideally 20%+
Exit trigger	Revenue deceleration 3+ qtrs	PAT deceleration / margin compression / promoter selling
Risk	Adoption fails	AI/structural disruption of the model

Sub-20% revenue CAGR is NOT a pass under this lens (it IS under S-curve). A company growing revenue 15% but expanding margin 19%→33% PAT CAGR is a valid compounder.

Workflow

1. Screen for the pure-play profile

Across sectors (not one sector at a time), look for:

• Business IS the growth story — dominant exposure, not a conglomerate where the growth division is 10% of earnings.
• PAT CAGR > 20% (5Y and especially 3Y/TTM trend) — check whether it's accelerating or decelerating.
• Margin-led growth confirmed — OPM trend expanding, and profit growth faster than revenue growth (that gap is the compounding engine).
• Quality: ROCE > 15% (ideally 20%+), ROE > 15%, low debt, healthy CFO/PAT.
• Valuation via PEG = PE ÷ lower of 3Y and 5Y PAT CAGR. PEG < 1.5 strong, < 2 acceptable, > 2 prices in the growth. Flag >500bps 3Y-vs-5Y divergence as deceleration.
• Smart money: stable/increasing promoter + rising FII/DII. Promoter selling >5% is a hard stop.
• Working capital hygiene: debtor/inventory days not deteriorating (worsening debtor days = earnings quality red flag).

2. Pull live data

Use Screener.in standalone pages (see the indian-stock-analysis skill for the stable extraction workflow):

• Summary snapshot: CMP, P/E, Market Cap, ROCE, ROE, Div Yield (always visible on standalone page, no login).
• Cross-domain peer table on the largest/leader's page gives CMP, P/E, MCap, % yield, ROCE and quarterly growth for the whole peer group in ONE navigation.
• CAGR tables (Compounded Sales/Profit Growth, 5Y/3Y/TTM) and OPM trend from Ratios.

3. Rank & verdict

• 🟢 BUY/compound — PAT CAGR > 20% accelerating, ROCE > 20%, PEG < 1.5, no promoter selling.
• 🟡 WATCH — quality but expensive (PEG > 2), or one red flag (deteriorating working capital, lumpy quarters).
• 🔴 PASS — PAT CAGR < 20% with no margin story, ROCE < 15%, promoter selling, weakening working capital.

4. Write-up

Follow the user's output conventions: nested bullet lists in responses (NOT markdown tables — he finds tables hard to read on Slack). Save full analysis files to /opt/data/wiki/wealth/invest/research/ if a persistent watchlist is wanted.

Pitfalls

1. Don't reject sub-20% revenue growth outright — it may be a margin-led compounder. Check the revenue→PAT gap.

2. Stock-price CAGR ≠ business quality. A stock can fall −38% over 1Y while fundamentals grow — that divergence is often the compounding entry, but verify it's a rerating and not a broken business.

3. Large-caps (TCS/Infosys/HCL/LTIM) are dividend compounders, not growth sleeve. Single/low-double-digit revenue growth belongs in the dividend portfolio.

4. Beware overstated "other income" inflating PAT (Screener flags it in CONS — e.g., Zensar ₹282 Cr). Strip it before computing sustainable PAT CAGR.

5. Lumpy quarters (esp. in a growth stock like Coforge) — use CAGR/trend, not single-quarter spikes.

6. AI disruption overhang applies to every services/model business — monitor margin compression as the tell, not just revenue.

Reference

• Worked example (IT services screen: Zensar vs Persistent vs Coforge vs Birlasoft): references/it-services-compounder-screen.md
• Related skill: indian-stock-analysis (deep-dive per stock).

Review cadence

• Quarterly: update PAT CAGR trend, OPM, working capital, promoter/FII.
• Annual: full re-score, verify margin story still holds.
• Stock movement > 20%: check if thesis changed vs noise.
• See also indian-stock-analysis for deep-dive template and technicals.

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Shared Workflow

Both lenses share the same data extraction approach:

Pulling Screener.in data

Use Screener.in standalone pages (see screener-in-extraction skill for the stable extraction workflow):

• Summary snapshot: CMP, P/E, Market Cap, ROCE, ROE, Div Yield (always visible on standalone page, no login)
• Cross-domain peer table on the largest/leader's page gives CMP, P/E, MCap, % yield, ROCE and quarterly growth for the whole peer group in ONE navigation
• CAGR tables (Compounded Sales/Profit Growth, 5Y/3Y/TTM) and OPM trend from Ratios

Output conventions

• Nested bullet lists in responses (NOT markdown tables — Joseph finds tables hard to read on Slack)
• Save full analysis files to /opt/data/wiki/wealth/invest/research/ if a persistent watchlist is wanted
• Verdicts: DEEP DIVE (run full indian-stock-analysis), WATCH (track quarterly), PASS (disqualifying issues)

Review cadence

• Quarterly: update PAT CAGR trend, OPM, working capital, promoter/FII
• Annual: full re-score, verify thesis still holds
• Stock movement > 20%: check if thesis changed vs noise
• See also indian-stock-analysis for deep-dive template and technicals