Other Screens
Dark Horse (High OPM + Growth + Promoter Conviction) is a Other Screens 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.
Most quality screens are binary: they identify either high-margin businesses or high-growth businesses. The market has already priced most of both. The 'dark horse' is a business that is simultaneously high-margin and high-growth — a combination the market treats as rare enough that it rarely prices it fully until the company has been delivering for several years. The EBIT margin threshold of >30% sustained is a structural filter: only businesses with genuine pricing power or cost advantages can hold that margin over 3 years, particularly in India's competitive environment where raw material inflation, labour costs, and working capital pressure compress margins for all but the most differentiated businesses. Adding a 5-year revenue CAGR >20% creates the second dimension: the business must not only be high-margin but must have been growing at a sustained pace for half a decade — ruling out businesses that have high margins because they stopped investing in growth. The promoter holding >50% is the conviction multiplier: when the founder or promoter family retains majority ownership in a business compounding this powerfully, they are signaling that they believe the opportunity ahead is larger than the liquidity they could capture by reducing their stake. The three-way combination creates a self-reinforcing filter: businesses that clear all three thresholds simultaneously are rare, and the combination itself tends to be durable — high margins fund growth without external dilution, promoter alignment maintains long-term focus, and the market's eventual recognition of the combination typically produces a sustained re-rating.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Margin Excellence
Growth Momentum
Promoter Conviction
Hard excludes
Ranked by EBIT Margin (3Y Avg), highest first.
EBIT Margin 3-Year Average %
Average of (ebit_year / revenue_year * 100) for each of the 3 most recently completed fiscal years, where ebit_year = profitBeforeTax + financeCosts from FinEdge annual income statement (statement_code=pl, period=annual). Revenue = net revenue line from the same statement. Averaged rather than using the latest year only to ensure margin durability over the 3-year window, not just in the most recent year.
High is better
Revenue CAGR 5-Year %
(revenue_latest_annual / revenue_5yr_prior_annual) ^ (1/5) - 1, expressed as a percentage. Revenue from FinEdge annual income statement (statement_code=pl, period=annual). Latest annual is the most recently completed fiscal year. FinEdge provides 8 years of annual data, making a 5-year CAGR computation robust.
High is better
Promoter Holding %
Sum of shareholding percentages for categories Indian (promoter) and Foreign (promoter) from the FinEdge shareholding pattern API (GET /api/v1/shareholdings/pattern/{symbol}?period=annual), using the most recently available period. The API's catagory field (intentional typo) maps Indian + Foreign rows to promoter total. Expressed as a percentage of total paid-up equity.
The conviction multiplier. A promoter holding >50% in a high-margin, high-growth business is a strong positive signal — not a red flag. The concern with high promoter holding (illiquidity, governance concentration) is outweighed in this specific combination by the evidence of operating excellence: a business this good that the promoter is still not selling is one the promoter likely believes is still undervalued relative to its long-term trajectory. Cross-reference against promoter pledge percentage from the shareholdings/summary endpoint — high holding with high pledge is a different risk profile from high holding with zero pledge.
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