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In Mutual funds 22
This Loans and deposits 25
Section Alternate investments 26
expected to show growth in revenue, net weight to net profit growth and 10% to analysts covering the stock (the
Methodology profit and EPS (earnings per share) in the growth in EPS (the higher, the better, higher, the better) and 10% to
DB Corp
in the next four quarters. The final two for each parameter). Growth is consensus rating (a composite rating 0.87
The four filters used to arrive at filters were that the companies should calculated by comparing the based on the recommendations by all Persistent
the Top 50 stocks have made profits in the past four ’consensus estimate’ for the next 12 analysts who track a stock. Again, the Systems
Only traded stocks: Of the about 7,000 quarters and have a positive net worth. months with the historical 12-month higher, the better). 0.86
listed stocks, only actively traded stocks Rating rationale values. 4. ... and so do the risks.
were considered. Power Grid
Having arrived at the final stocks 2. ... but only at reasonable valuation. Total weight: 10%. Two kinds of risks
Corp of India NTPC
Only big stocks: Only companies with universe, we ranked them using the Total weight: 40%, which comprises were considered. A 5% weight was
an average market capitalisation and following four principles. 10% weight to PE ratio, 10% to PB assigned to downside risk and bear 0.82 0.84
revenue of over `1,000 crore were A percentile rating (on a 1-100 scale) is ratio, 10% to PEG ratio (the lower, beta each (the lower, the better, in
considered. given to each parameter and the the better, for all three parameters) both cases).
Maruti
Only well tracked: We picked stocks composite ranking is arrived at using the and 10% to dividend yield (the higher,
Suzuki India
that are tracked by at least 10 analysts. weighted average of these parameters. the better).
The ranking methodology has been developed 0.72
Only profitable and growing: We 1. Growth is the key... 3. Analysts’ views matter... by Narendra Nathan. A detailed explanation
considered only those stocks that are Total weight: 30%, which comprises Total Weight: 20%, which comprises of the methodology is available at
See downside risk and bear beta columns
10% weight to revenue growth, 10% 10% weight to the total number of www.economictimes.com/wealth
in the adjacent table.