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CANSLIM & Growth

Growth Without Dilution

Growth Without Dilution is a CANSLIM & Growth 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.

What it does and why

Most investors focus exclusively on revenue and earnings growth without checking whether that growth required issuing new shares. A company that doubles its revenue by doubling its share count has not created value for existing shareholders — it has diluted them. Their ownership percentage has shrunk; the per-share numbers have been diluted. This screener checks that revenue, profit, and earnings per share have all grown strongly over 8 years while the share count has remained effectively flat (less than 10% growth in total shares outstanding). This combination — strong growth with capital discipline — is the hallmark of a business that can fund its own expansion from internally generated cash rather than from shareholders' pockets.

The rule, step by step

A stock must satisfy every condition below. Conditions are grouped under the pillar they test.

Capital Discipline

  • (Share Dilution (5Y) is missing) or (Share Dilution (5Y) ≤ 10)

Per-Share Growth Quality

  • Revenue CAGR (5Y) > 12
  • EPS CAGR (5Y) > 12

Hard excludes

  • Promoter pledge above 30% of the promoter's holding
  • Market cap below ₹500 crore
Passes the screen

Ranked by EPS CAGR (5Y), highest first.

The figures it uses

Revenue CAGR (5Y)

Used in a condition
Formula
Revenue ((Latest ÷ value 5 years earlier)^(1/5) − 1) × 100, both values positive
Input fields
revenue
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=pl&period=annual
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

EPS CAGR (5Y)

Used in a condition
Formula
EPS ((Latest ÷ value 5 years earlier)^(1/5) − 1) × 100, both values positive
Input fields
eps
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=pl&period=annual
Corporate actions
Adjusted for corporate actions before use
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Share Dilution (5Y)

Used in a condition
Formula
(Paid-up shares now − paid-up shares 20 quarters earlier) ÷ the earlier count × 100
Input fields
paidUpEquityShares
Source of record
FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterly
Corporate actions
Adjusted for corporate actions before use
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Promoter Pledge

Hard exclude input
Formula
Pledged shares as a share of the promoter's own holding: pledgedSharesPct ÷ promoter holding × 100; blank when the quarter is not listed
Input fields
pledgedSharesPct, promoter holding
Source of record
FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterlyFinEdge · /api/v1/shareholdings/pattern/{symbol}?period=quarterly
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Market Cap

Hard exclude input
Formula
Close × paid-up equity shares ÷ 10,000,000 (₹ crore)
Input fields
close, paidUpEquityShares
Source of record
Upstox · public historical candles, NSE_EQ|{ISIN} (no auth)FinEdge · /api/v1/daily-quotes/{symbol} (fallback)FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterly
Corporate actions
Adjusted for corporate actions before use
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

What each figure means

Share Count Growth Over 8 Years (%)

The percentage increase in total shares outstanding comparing the most recent year to 8 years ago. Below 10% means the company has issued fewer than 10% additional shares over 8 years — effectively self-funding its growth.

Low is better

Revenue CAGR (8 Years, %)

Compound annual growth rate of revenue over 8 fiscal years.

High is better

EPS CAGR (8 Years, %)

Compound annual growth rate of earnings per share over 8 fiscal years. This is the per-share earnings growth — higher than or equal to PAT CAGR when shares outstanding are stable or declining.

EPS CAGR approximating or exceeding PAT CAGR confirms that the profit growth is flowing to existing shareholders without dilution. If EPS CAGR is significantly lower than PAT CAGR, share issuance has been eroding the per-share value of the business.

High is better

Try the rule

Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.

  • Revenue CAGR (5Y) > 12—
  • EPS CAGR (5Y) > 12—
  • (Share Dilution (5Y) is missing) or (Share Dilution (5Y) ≤ 10)—

Enter values to begin

How sensitive is it?

How many stocks pass if this threshold were set differently. Counts only; no stocks are named.

A worked example

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Evidence

What the harness measured

no_verified_figureNot yet tested

We have not measured this screen yet, so there is no record to explain.

Live monitoring

Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.

  • 5-day IC -0.034 · signal date 2026-10-13 · n 4477
  • 22-day IC -0.017 · signal date 2026-09-10 · n 3881

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.

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Rule version 1.0.0

Questions

How is this screen calculated?
Each stock is tested against 3 conditions using figures computed from exchange prices and company filings, adjusted for corporate actions. The rule is versioned; this page shows version 1.0.0.
How often does the screen update?
The figures are recomputed once each trading day after the nightly compute. A stock whose figures are more than three days old is left out rather than shown stale.
Is this investment advice?
No. This is educational material describing a screening method. It does not recommend any security and does not consider your circumstances.
Educational use only — GoQuant is a research tool. This page explains a screening method and is not a recommendation. Investment advice is provided by FINOME TECHNOLOGIES PVT LTD (AltQube), SEBI-registered Investment Adviser, registration no. INA000018373, under a signed advisory agreement and after a risk profile. Past performance is not indicative of future results.