How I select company by using sock screener
There are many stock screener websites we prefer www.valueresearchonline
1) Select any sector let say automobile sector that further classified as cars and utility vehicles https://www.valueresearchonline.com/stocks/stockselector/default.asp?sec=1&indus=102
2) Go financial health area and sort operating margin (high to low) to know which company having more operating margin. You can see Maruti Suzuki placed top
3) Sort ROE (high to low) here Mahindra and Mahindra placed top but Maruti Roe also not bad
4) See the Debt equity: sort (Low to High) Low debt is always better
Here we can understand Maruti financial health is better than its peer
5) Then go to Growth area https://www.valueresearchonline.com/stocks/stockselector/growth.asp?myport=&index=&cap=&sec=1&indus=102&firstchar= Sort 5 year revenue growth (high to low) and 5 year EPS growth. sales and profit growth directly effect company’s share price growth. Maruti Suzuki placed top in revenue and EPS growth
6) Finally go to Returns area
and sort 5 year returns (high to low) to know which company‘s share increase the value of its shareholder.
You can see that we checked past financial health, growth and returns. All these 3 screener types must pass our stock in order to analyse further.
Those 3 way initial analysis eliminates many companies.