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CANSLIM & Growth

OPM Expansion (YoY and QoQ)

OPM Expansion (YoY and QoQ) is a CANSLIM & Growth 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.

What it does and why

Most screeners look at the level of profitability — is the margin high? — but miss the direction of travel. A company with 12% operating margin that was at 8% a year ago is fundamentally more interesting than one sitting at 18% that has been slowly compressing for three years. Expanding margins signal that a business is gaining pricing power, achieving operating leverage as revenue scales, or successfully cutting structural costs — all of which tend to be durable advantages rather than one-time events. The YoY dimension confirms the trend is real across business cycles; the QoQ dimension catches it early, before it shows up in annual filings. Note: EBIT/revenue is used as the operating margin proxy throughout this screener because the FinEdge API does not return gross_profit or operating_profit keys (confirmed as of QP13). Banks are excluded because the absence of a financeCosts key makes EBIT undefined for financial institutions.

The rule, step by step

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

Margin Quality

  • Operating Margin, Latest Quarter > Operating Margin, Prior Quarter
  • Operating Margin, Latest Quarter > Operating Margin, Year-Ago Quarter

Consistency

Described in the philosophy; not a pass/fail condition in the current rule

Hard excludes

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

Ranked by Operating Margin, Latest Quarter, highest first.

The figures it uses

Operating Margin, Latest Quarter

Used in a condition
Formula
Quarterly EBIT ÷ revenue × 100 for the latest quarter
Input fields
ebit, revenue
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=pl&period=quarterly
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Operating Margin, Prior Quarter

Used in a condition
Formula
Quarterly EBIT ÷ revenue × 100 for the quarter before the latest
Input fields
ebit, revenue
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=pl&period=quarterly
Refresh
Recomputed nightly (06:30 IST job); rows older than 3 days are excluded from screens

Operating Margin, Year-Ago Quarter

Used in a condition
Formula
Quarterly EBIT ÷ revenue × 100 for the same quarter a year earlier
Input fields
ebit, revenue
Source of record
FinEdge · /api/v1/financials/{symbol}?statement_code=pl&period=quarterly
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

Market Cap

Hard exclude input
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

What each figure means

EBIT Margin (Latest Quarter)

EBIT for the most recent reported quarter divided by revenue for the same quarter, expressed as a percentage. EBIT = profitBeforeTax + financeCosts (FinEdge income statement fields).

High is better

EBIT Margin Change YoY (Percentage Points)

EBIT margin for the latest reported quarter minus EBIT margin for the same quarter in the prior fiscal year, expressed in percentage points. For example, if Q3 FY26 margin is 14% and Q3 FY25 margin was 11%, this value is +3.0.

High is better

EBIT Margin Change QoQ (Percentage Points)

EBIT margin for the latest reported quarter minus EBIT margin for the immediately preceding quarter, expressed in percentage points.

The early-warning signal. Sequential improvement on top of year-over-year improvement is the double confirmation that this screener requires. A positive QoQ change alongside a positive YoY change dramatically reduces the odds that YoY expansion was a seasonal fluke or a one-off cost reduction that has already reversed.

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.

  • Operating Margin, Latest Quarter > Operating Margin, Prior Quarter—
  • Operating Margin, Latest Quarter > Operating Margin, Year-Ago Quarter—

Enter values to begin

A worked example

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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 -0.108 · signal date 2026-10-14 · n 4447
  • 22-day IC -0.083 · 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

Run this screen

Rule version 1.0.0

Questions

How is this screen calculated?
Each stock is tested against 2 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.