Quality & Compounders
SageOne — Samit Vartak Framework is a Quality & Compounders screen. It checks every NSE-listed stock against 6 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.
SageOne Investment Advisors, led by Samit Vartak, operates from a conviction that high-growth businesses are systematically mispriced by the market when they trade below their compounding potential. The screen enforces simultaneous hurdles on revenue growth (>22% 3yr CAGR), profit growth (>23% 3yr CAGR), capital efficiency (ROE >25%, ROCE >20%), and valuation discipline (PE <22). The valuation ceiling is the insight the market routinely skips: investors chasing high-growth stories often pay 40-60x PE and accept that the growth justifies any price, but Vartak insists the margin of safety comes from buying growth before the consensus has fully priced it in. The framework is more demanding than typical growth screens because requiring all five thresholds simultaneously eliminates businesses where one strong dimension masks weakness in another — high-growth but capital-hungry, or capital-efficient but ex-growth.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Growth Quality
Capital Returns
Value Discipline
Hard excludes
Ranked by ROE, highest first.
3-Year Revenue CAGR (%)
((revenue_latest / revenue_3yr_ago) ^ (1/3) - 1) * 100, where revenue is consolidated annual net sales.
Requires >22%. Measures whether the business is genuinely expanding its market, not just repricing or restructuring. Three years smooths single-year noise from lumpy project revenues or macro tailwinds.
High is better
3-Year PAT CAGR (%)
((pat_latest / pat_3yr_ago) ^ (1/3) - 1) * 100, where PAT is profit after tax attributable to owners from continuing operations.
Requires >23%. Growing faster than revenue implies operating leverage — fixed costs are being absorbed by volume, which is the margin expansion story Vartak looks for. Computing from continuing operations excludes discontinued-ops windfalls that inflate one-year PAT.
High is better
Return on Equity (%)
PAT_latest / average_shareholders_equity * 100, where average equity = (equity_current + equity_prior_year) / 2.
Requires >25%. A sustained ROE above 25% indicates the business earns shareholder capital well in excess of its cost, which is the prerequisite for compounding. Single-year ROE is checked here; screener context must note that a single high ROE can be manufactured — the ROCE check provides the cross-validation.
High is better
Return on Capital Employed (%)
EBIT / (total_equity + long_term_borrowings + short_term_borrowings) * 100, using latest annual figures.
Requires >20%. ROCE is pre-tax and debt-structure-neutral, making it comparable across capital structures. A business with high ROE but mediocre ROCE is using leverage to flatter equity returns — the ROCE floor catches this. Both ROE and ROCE together confirm genuinely efficient capital allocation.
High is better
Price-to-Earnings Ratio
current_market_price / trailing_twelve_month_eps_from_continuing_operations.
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