Quality & Compounders
Multibagger Stocks 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.
Multibaggers — stocks that return 5×, 10×, or more over several years — almost always have the same profile: strong and compounding earnings growth, high capital efficiency, and a business model that can scale without proportionally increasing capital requirements. They are rarely found at cheap valuations because the market is not blind to quality; instead, they are bought at reasonable prices for quality that subsequently proves to be better than even optimistic expectations. This screener identifies companies with the financial characteristics most associated with long-term compounding: high 3-year EPS growth, high ROCE, and meaningful revenue scale.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Growth
Capital Efficiency
General conditions
Hard excludes
Ranked by EPS CAGR (5Y), highest first.
EPS CAGR (3 Years, %)
Compound annual growth rate of earnings per share over the past 3 years. This is the single most predictive metric for long-term stock returns — stocks with consistently high EPS CAGR tend to deliver strong shareholder returns.
High is better
Revenue CAGR (3 Years, %)
Compound annual growth rate of total revenue over the past 3 years. Revenue growth that consistently accompanies EPS growth confirms the earnings are genuine and not the result of cost cuts or financial engineering.
High EPS growth without revenue growth is a warning sign — it may be driven by margin expansion, buybacks, or one-time items. EPS and revenue both growing strongly together is the cleanest signal of a healthy, scaling business.
High is better
Return on Capital Employed (%)
Operating profit as a percentage of total capital employed. The best multibaggers tend to have ROCE well above their cost of capital — this means every rupee reinvested generates more than a rupee of future value.
High 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.
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