Quality & Compounders
Coffee Can Portfolio 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.
The Coffee Can concept — originally from Robert Kirby and popularised in India by Saurabh Mukherjee — is about finding businesses so consistently good that you can buy them and forget about them for a decade. The test is brutally simple: the company must have grown revenue by at least 10% every single year for 8 years AND maintained ROCE above 15% every single year for 8 years. No exceptions, no 'but it had a bad COVID year'. We add two quality gates that the original framework lacks: a cash flow quality check (to catch companies that report profits but collect less cash) and a valuation sanity check (to avoid paying bubble prices for confirmed compounders).
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Growth Consistency
Quality Consistency
Valuation Sanity
Described in the philosophy; not a pass/fail condition in the current rule
Hard excludes
Ranked by Revenue CAGR (8Y), highest first.
Consecutive Years of ≥10% Revenue Growth
The number of the last 8 fiscal years in which the company grew its revenue by 10% or more. The maximum is 8; the minimum to qualify for this screener is 8 (all 8 years must pass — no exceptions).
High is better
Consecutive Years of ROCE ≥15%
The number of the last 8 fiscal years in which ROCE exceeded 15%. Must be 8 out of 8 to qualify.
High is better
Years with CFO/PAT ≥ 0.85 (out of 8)
The number of the last 8 fiscal years in which operating cash flow was at least 85% of reported net profit. This checks whether reported profits are backed by real cash collection.
High is better
Current PE vs Own 5-Year Median PE (%)
The percentage by which the current PE exceeds the company's own 5-year median PE. A value of 40% means the stock is 40% more expensive than its own historical average — the market is pricing in significant further improvement.
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.
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