Quality & Compounders
Basant Maheshwari Framework is a Quality & Compounders screen. It checks every NSE-listed stock against 3 conditions computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
Basant Maheshwari's investment approach, refined over decades and widely shared on social media, focuses on businesses that have proven their ability to earn exceptional returns on shareholders' capital — and share those returns with investors through consistent dividends. His criteria are deceptively demanding: ROE above 30% for three or more consecutive years eliminates most companies immediately (sustaining 30%+ returns on equity year after year is extremely rare). The combination of very high ROE, regular dividend payments, and manageable debt is the fingerprint of a capital-efficient business run by management that respects shareholder returns.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Capital Quality
Shareholder Returns
Described in the philosophy; not a pass/fail condition in the current rule
Revenue Growth
Hard excludes
Ranked by PAT CAGR (3Y), highest first.
Return on Equity (%, Current Year)
Net profit divided by average total equity, expressed as a percentage. Measures how efficiently the company is generating profits from shareholders' money.
High is better
Minimum ROE Over Last 3 Years (%)
The lowest ROE recorded across the past 3 fiscal years. Must be > 30% to confirm consistency — not just a one-year spike.
High is better
Dividend Per Share (₹)
Total dividend paid per share in the most recent fiscal year. A positive value confirms the company is a dividend payer.
Regular dividend payment is a quality signal: it constrains management from hoarding cash, signals confidence in future earnings, and creates a shareholder-return culture. Basant Maheshwari specifically uses this to filter companies that genuinely return capital versus those that merely report high ROE.
High is better
Debt-to-Equity Ratio
Total debt divided by total equity.
Low debt with very high ROE means the company is achieving exceptional returns without financial leverage. This is the safest form of high-ROE — it cannot collapse in a credit crunch.
Low is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
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How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
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We have not measured this screen yet, so there is no record to explain.
Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0