CANSLIM & Growth
Quality Growth After 40% Correction 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.
A 40% price correction in a fundamentally strong business is a rare event that typically reflects temporary sentiment, market-wide risk-off moves, or sector rotation rather than a permanent deterioration in the company's earnings power. This screen deliberately combines a high fundamental quality bar (ROCE >20%, 3-year EPS CAGR >20%) with a severe price dislocation (40%+ from 52-week or all-time high) to surface the small subset of stocks where the price has fallen significantly but the underlying business has not. The distinction between this screen and a generic value trap screen is critical: the quality filter does the work of separating fallen high-quality names from fallen low-quality names, since both experience 40% corrections but only the former deserve consideration as buying opportunities. Patience is required — stocks can stay dislocated for extended periods even when fundamentals are intact.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Fundamental Quality Gate
Price Correction Magnitude
Hard excludes
Ranked by ROCE, highest first.
ROCE (%)
Return on Capital Employed, computed as EBIT / (total assets - current liabilities) * 100, using the most recently reported annual financial statements from FinEdge.
High is better
3-Year EPS CAGR (%)
Compound annual growth rate of EPS over the most recent 3 annual periods, computed as (eps_latest_annual / eps_3yr_ago_annual) ^ (1/3) - 1, expressed as a percentage. Uses continuing operations EPS from FinEdge annual financials.
High is better
% Below 52-Week / ATH High
Percentage decline from the higher of the 52-week high and the all-time high closing price, computed as (high_price - current_price) / high_price * 100, where high_price = max(52wk_high, all_time_high).
Low is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
Enter values to begin
How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
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We could not measure this screen well enough to say anything yet.
This screen depends on company financials, and we can only test price-based ideas so far, so it could not be measured.
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