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Quality & Compounders

Multibagger Stocks

Multibagger Stocks 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.

What it does and why

Multibaggers — stocks that return 5×, 10×, or more over several years — almost always have the same profile: strong and compounding earnings growth, high capital efficiency, and a business model that can scale without proportionally increasing capital requirements. They are rarely found at cheap valuations because the market is not blind to quality; instead, they are bought at reasonable prices for quality that subsequently proves to be better than even optimistic expectations. This screener identifies companies with the financial characteristics most associated with long-term compounding: high 3-year EPS growth, high ROCE, and meaningful revenue scale.

The rule, step by step

A stock must satisfy every condition below. Conditions are grouped under the pillar they test.

Growth

  • EPS CAGR (5Y) > 25

Capital Efficiency

  • Debt/Equity < 0.5

General conditions

  • Market Cap < 10000

Hard excludes

  • Promoter pledge above 30% of the promoter's holding
  • Market cap below ₹500 crore
Passes the screen

Ranked by EPS CAGR (5Y), highest first.

The figures it uses

Market Cap

Used in a condition
Formula
Close × paid-up equity shares ÷ 10,000,000 (₹ crore)
Input fields
close, paidUpEquityShares
Source of record
Upstox · public historical candles, NSE_EQ|{ISIN} (no auth)FinEdge · /api/v1/daily-quotes/{symbol} (fallback)FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterly
Corporate actions
Adjusted for corporate actions before use
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

EPS CAGR (5Y)

Used in a condition
Formula
EPS ((Latest ÷ value 5 years earlier)^(1/5) − 1) × 100, both values positive
Input fields
eps
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=pl&period=annual
Corporate actions
Adjusted for corporate actions before use
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Debt/Equity

Used in a condition
Formula
Total debt ÷ total equity from the latest annual balance sheet; a company reporting zero debt has a ratio of 0; none is given when the debt figure is unknown or equity is not positive
Input fields
total debt, total equity
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=bs&period=annual
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Promoter Pledge

Hard exclude input
Formula
Pledged shares as a share of the promoter's own holding: pledgedSharesPct ÷ promoter holding × 100; blank when the quarter is not listed
Input fields
pledgedSharesPct, promoter holding
Source of record
FinEdge · /api/v1/shareholdings/summary/{symbol}?period=quarterlyFinEdge · /api/v1/shareholdings/pattern/{symbol}?period=quarterly
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

What each figure means

EPS CAGR (3 Years, %)

Compound annual growth rate of earnings per share over the past 3 years. This is the single most predictive metric for long-term stock returns — stocks with consistently high EPS CAGR tend to deliver strong shareholder returns.

High is better

Revenue CAGR (3 Years, %)

Compound annual growth rate of total revenue over the past 3 years. Revenue growth that consistently accompanies EPS growth confirms the earnings are genuine and not the result of cost cuts or financial engineering.

High EPS growth without revenue growth is a warning sign — it may be driven by margin expansion, buybacks, or one-time items. EPS and revenue both growing strongly together is the cleanest signal of a healthy, scaling business.

High is better

Return on Capital Employed (%)

Operating profit as a percentage of total capital employed. The best multibaggers tend to have ROCE well above their cost of capital — this means every rupee reinvested generates more than a rupee of future value.

High is better

Try the rule

Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.

  • Market Cap < 10000—
  • EPS CAGR (5Y) > 25—
  • Debt/Equity < 0.5—

Enter values to begin

How sensitive is it?

How many stocks pass if this threshold were set differently. Counts only; no stocks are named.

A worked example

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Sign in with a completed risk profile to check any stock against this rule.

Evidence

What the harness measured

no_verified_figureNot yet tested

We have not measured this screen yet, so there is no record to explain.

Live monitoring

  • 5-day IC -0.052 · signal date 2026-10-14 · n 4447
  • 22-day IC 0.004 · signal date 2026-09-12 · n 3840

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.

Run this screen

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Rule version 1.0.0

Questions

How is this screen calculated?
Each stock is tested against 3 conditions using figures computed from exchange prices and company filings, adjusted for corporate actions. The rule is versioned; this page shows version 1.0.0.
How often does the screen update?
The figures are recomputed once each trading day after the nightly compute. A stock whose figures are more than three days old is left out rather than shown stale.
Is this investment advice?
No. This is educational material describing a screening method. It does not recommend any security and does not consider your circumstances.
Educational use only — GoQuant is a research tool. This page explains a screening method and is not a recommendation. Investment advice is provided by FINOME TECHNOLOGIES PVT LTD (AltQube), SEBI-registered Investment Adviser, registration no. INA000018373, under a signed advisory agreement and after a risk profile. Past performance is not indicative of future results.