Quality & Compounders
Marcellus Consistent Compounders (Large-Cap) is a Quality & Compounders screen. It checks every NSE-listed stock against 2 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.
Saurabh Mukherjee's Consistent Compounders framework, implemented by Marcellus Investment Managers, is specifically designed for large-cap businesses — distinct from the Rising Giants strategy which targets small-caps on a quality trajectory. The core observation is that investors chronically underestimate the durability of franchise businesses: a Hindustan Unilever or Asian Paints looks 'expensive' every year on a trailing PE basis, yet continues to compound at 15-20% for decades because the franchise quality — distribution moats, brand loyalty, pricing power — is not reflected in backward-looking metrics. The screen operationalises this by requiring ROCE above 15% for eight consecutive years (the minimum period to span two full business cycles), revenue CAGR above 10% over the same horizon, and a fixed-asset intensity below 30% of total assets (the asset-light proxy). Low asset intensity is the mechanism: a business that compounds without needing to perpetually reinvest in plant and equipment generates free cash flow structurally above its accounting earnings, and that surplus is what Marcellus compounds across decades.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
ROCE Durability
Revenue Sustainability
Described in the philosophy; not a pass/fail condition in the current rule
Capital Efficiency (Asset-Light)
Hard excludes
Ranked by Market Cap, highest first.
8-Year Minimum ROCE (%)
min(EBIT_yr / (total_equity_yr + long_term_borrowings_yr) * 100) for each of the 8 most recent completed financial years. The minimum is used, not the average — the screen requires every year to clear 15%.
High is better
8-Year Revenue CAGR (%)
((revenue_latest / revenue_8yr_ago) ^ (1/8) - 1) * 100, where revenue is consolidated annual net sales from the income statement.
High is better
Fixed Assets to Total Assets (%)
(net_block_fixed_assets / total_assets) * 100, using latest annual balance sheet. Net block includes tangible fixed assets net of depreciation; excludes goodwill and intangibles.
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