Screening Stocks

With 5,000+ listed companies, you can't research them all. Stock screening helps you find potential candidates worth deeper analysis.

Screening filters companies based on quantitative criteria. It's the first step that narrows 5,000 stocks to a manageable watchlist.

What is Stock Screening?

Using filters to find stocks that meet your criteria:

Financial metrics
Valuation ratios
Growth rates
Other parameters

Output: A shortlist of companies to research further.

Screening Tools

Free Tools

Tool	Strengths
Screener.in	Comprehensive, customizable
Trendlyne	Pre-built screens
Tickertape	User-friendly
NSE/BSE screeners	Official data

Paid Tools

Tool	Feature
Value Research	Mutual fund plus

Screener.in is free and powerful. Learn its query language – you can create very specific custom screens.

Common Screening Criteria

Profitability Filters

Filter	Purpose	Typical Threshold
ROE	Return efficiency	over 15%
ROCE	Capital efficiency	over 15%
Net margin	Profitability	over 10%
OPM	Operating efficiency	over 15%

Growth Filters

Filter	Purpose	Typical Threshold
Revenue CAGR 3Y	Growth rate	over 10%
Profit CAGR 3Y	Earnings growth	over 15%
EPS growth	Per-share growth	over 12%

Valuation Filters

Filter	Purpose	Typical Threshold
P/E	Price relative to earnings	under 20 (varies by sector)
P/B	Price relative to book	under 3
PEG	Growth-adjusted P/E	under 1.5

Financial Health Filters

Filter	Purpose	Typical Threshold
D/E	Leverage	under 1
Interest coverage	Debt servicing	over 3
Current ratio	Liquidity	over 1.5

Don't use all filters at once. You'll end up with zero results. Start with 3-4 key criteria.

Sample Screens

Quality Screen

ROE over 15%
Debt to Equity under 0.5
Profit CAGR 3Y over 10%
Positive operating cash flow

Value Screen

P/E under 15
P/B under 2
Dividend yield over 2%
Profit growth over 0

Growth Screen

Sales CAGR 3Y over 15%
Profit CAGR 3Y over 20%
ROE over 15%
Market cap over 5,000 Cr

Small Cap Discovery

Market cap 500-5,000 Cr
ROE over 18%
Promoter holding over 50%
Low debt (D/E under 0.5)

Negative Screens

Filtering out problems:

Exclude If	Reason
Negative cash flow 3 years	Cash problems

Screening Limitations

Limitation	Reality
Data errors	Not always accurate

Screening is step one, not the final decision. Every screened stock needs deep qualitative analysis.

From Screen to Research

After screening:

Get your shortlist (10-20 companies)
Quick check each – business type, recent news
Eliminate obvious rejects
Deep dive into promising ones
Build conviction before buying

Screener.in Query Examples

Market Capitalization > 1000 AND
ROE > 15 AND
Debt to equity < 0.5 AND
Profit growth 3Years > 10

Current price < 1.3 * Book value AND
Current price < 20 * Earnings per share AND
Return on capital employed > 12

Key Takeaways

Screening narrows universe to manageable size
Use Screener.in or similar tools
Combine profitability, growth, valuation filters
Screen results need qualitative analysis
Custom screens based on your strategy

Next: How do you create a framework for researching individual stocks?

Sources & Disclaimer

CFA Institute - Equity Asset Valuation
NCFM Fundamental Analysis Module

Note: Any benchmarks (e.g., "Good ROE is > 20%", or specific P/E ranges) are simplified industry heuristics for educational purposes. True evaluation depends on specific industry context, market cycles, and individual company circumstances.