Did the Peter Lynch Screener worked ?
In June 2014, I created a stock screener after re reading ‘One up on wall street’ by Peter lynch. You can read the old post here now lets review how those stocks performed vis a vis broader markets
| 1 | Tata Consultancy Services Ltd. | 2213.55 | 2696 | 21.80% |
| 2 | Lupin Ltd. | 983.4 | 1838 | 86.90% |
| 3 | Amara Raja Batteries Ltd. | 491.45 | 902 | 83.54% |
| 4 | MindTree Ltd. | 807.65 | 1466 | 81.51% |
| 5 | DB Corp Ltd. | 299.7 | 391 | 30.46% |
| 6 | CMC Ltd. | 1689.2 | 2023 | 19.76% |
| 7 | Persistent Systems Ltd. | 1060.75 | 1870 | 76.29% |
| 8 | Lakshmi Machine Works Ltd. | 3697.35 | 3794 | 2.61% |
| 9 | Monsanto India Ltd. | 2131.5 | 3282 | 53.98% |
| 10 | eClerx Services Ltd. | 1169.15 | 1572 | 34.46% |
| 11 | NIIT Technologies Ltd. | 427.5 | 417 | -2.46% |
| 12 | Finolex Cables Ltd. | 162.1 | 279 | 72.12% |
| 13 | Dhanuka Agritech Ltd. | 380.35 | 642 | 68.79% |
| 14 | Zensar Technologies Ltd. | 394.65 | 731 | 85.23% |
| 15 | VST Tillers Tractors Ltd. | 1818.15 | 1592 | -12.44% |
| Average return (equal weight portfolio) | 46.84% | |||
| CNX Midcap | 25.36% | |||
| BSE Small Cap | 18.42% | |||
| Sensex | 16.73% |
The screener outperformed broader markets by some distance. Now as with any good screen based trading strategies you need replace the old guard with new performers, I am doing it after nine months you can review quaterly or yearly depends upon your comfort level.
If you run this public screen today, you get the following 15 stocks sorted based on market cap
| Company | Price | |
| 1 | Tata Consultancy Services Limited | 2696.45 |
| 2 | National Aluminium Company Limited | 49.95 |
| 3 | Akzo Nobel India Limited | 1495.4 |
| 4 | Kaveri Seed Company Limited | 970.85 |
| 5 | Kajaria Ceramics Limited | 805.9 |
| 6 | Indraprastha Gas Limited | 432.05 |
| 7 | Alstom India Limited | 713.25 |
| 8 | Finolex Cables Limited | 279.95 |
| 9 | Motilal Oswal Financial Services Limited | 295.7 |
| 10 | Dhanuka Agritech Limited | 639.75 |
| 11 | VST Industries Limited | 1700.8 |
| 12 | IFB Industries Limited | 514.7 |
| 13 | Hindustan Media Ventures Limited | 227.7 |
| 14 | Sonata Software Limited | 155.7 |
| 15 | Lycos Internet Ltd. | 34.15 |
3 stocks are common to previous screen, so we will leave them TCS, Finolex & Dhanuka and the 12 new stocks we will add them and revisit after 9 months to see if this screen is able to beat markets consistently. Only if a screen beats both bull and bear markets it can be adopted for trading and investing by investors
You can download calculations from here
Note this post is to educate you on building screens it is not recommendation to buy or sell any of of the above mentioned stocks