Greenblatt Magic Formula
Joel Greenblatt's value investing strategy combining high earnings yield and high return on capital. Rebalance annually.
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Educational Screening Only - This is NOT investment advice or a recommendation to buy/sell.
Magic Formula requires annual rebalancing. Data updated quarterly. Always consult a SEBI-registered advisor before investing.
Magic Formula Philosophy
Investment Approach
- Buy 20-30 stocks ranked highly on combined metrics
- Hold for one year, then rebalance
- Focus on good companies at bargain prices
- Systematic, rules-based approach
Key Criteria (4/4)
- High Earnings Yield: >8% (value indicator)
- High Return on Capital: ROE >20%
- Adequate Liquidity: Market Cap > ₹500 Cr
- Positive Earnings Trend
Top Ranked Stocks (50)
Passing ≥ 3 out of 4 criteria
| Stock | Sector | Price | Market Cap (₹Cr) | Rank | Criteria | Action |
|---|---|---|---|---|---|---|
| LICI Life Insurance Corporation of India | Banking and Finance | ₹879.2 | 554,702.3 | Top Tier | 4/4 | Analyze → |
| ITC ITC Ltd. | Food, Beverages & Tobacco | ₹317.5 | 398,366.85 | Top Tier | 4/4 | Analyze → |
| RECLTD REC Ltd. | Banking and Finance | ₹350.65 | 92,979.14 | Top Tier | 4/4 | Analyze → |
| NMDC NMDC Ltd. | Metals & Mining | ₹84.86 | 74,466.7 | Top Tier | 4/4 | Analyze → |
| NATIONALUM National Aluminium Company Ltd. | Metals & Mining | ₹370 | 67,716.61 | Top Tier | 4/4 | Analyze → |
| MAHABANK Bank of Maharashtra | Banking and Finance | ₹65.5 | 50,871.94 | Top Tier | 4/4 | Analyze → |
| IRB IRB Infrastructure Developers Ltd. | Cement and Construction | ₹44.48 | 26,650.11 | Top Tier | 4/4 | Analyze → |
| WELCORP Welspun Corp Ltd. | Metals & Mining | ₹831.95 | 22,104.33 | Top Tier | 4/4 | Analyze → |
| NATCOPHARM Natco Pharma Ltd. | Pharmaceuticals & Biotechnology | ₹835.5 | 15,241.36 | Top Tier | 4/4 | Analyze → |
| AKZOINDIA Akzo Nobel India Ltd. | Consumer Durables | ₹2,994.9 | 13,719.47 | Top Tier | 4/4 | Analyze → |
| GMRP&UI GMR Power and Urban Infra Ltd. | Utilities | ₹103.4 | 8,178.82 | Top Tier | 4/4 | Analyze → |
| RELINFRA Reliance Infrastructure Ltd. | Utilities | ₹109.84 | 4,768.73 | Top Tier | 4/4 | Analyze → |
| ASHOKA Ashoka Buildcon Ltd. | Cement and Construction | ₹157.8 | 4,428.41 | Top Tier | 4/4 | Analyze → |
| KNRCON KNR Constructions Ltd. | Cement and Construction | ₹146.6 | 4,111.93 | Top Tier | 4/4 | Analyze → |
| OSWALPUMPS Oswal Pumps Ltd. | General Industrials | ₹351.3 | 4,046.2 | Top Tier | 4/4 | Analyze → |
| COALINDIA Coal India Ltd. | Metals & Mining | ₹419.2 | 259,512.49 | Top Tier | 3/4 | Analyze → |
| TMPV Tata Motors Passenger Vehicles Ltd. | Automobiles & Auto Components | ₹383.25 | 141,898.64 | Top Tier | 3/4 | Analyze → |
| AIIL Authum Investment & Infrastructure Ltd. | Banking and Finance | ₹496.15 | 41,310.57 | Top Tier | 3/4 | Analyze → |
| BHARTIARTL Bharti Airtel Ltd. | Telecom Services | ₹2,016.2 | 1,169,373.73 | Mid Tier | 3/4 | Analyze → |
| TCS Tata Consultancy Services Ltd. | Software & Services | ₹2,741.9 | 1,055,866.48 | Mid Tier | 3/4 | Analyze → |
| INFY Infosys Ltd. | Software & Services | ₹1,384.1 | 598,348.36 | Mid Tier | 3/4 | Analyze → |
| HINDUNILVR Hindustan Unilever Ltd. | FMCG | ₹2,407 | 578,868.81 | Mid Tier | 3/4 | Analyze → |
| HCLTECH HCL Technologies Ltd. | Software & Services | ₹1,470.9 | 421,133.69 | Mid Tier | 3/4 | Analyze → |
| BEL Bharat Electronics Ltd. | General Industrials | ₹444 | 318,267.77 | Mid Tier | 3/4 | Analyze → |
| HAL Hindustan Aeronautics Ltd. | General Industrials | ₹4,178.8 | 275,134.04 | Mid Tier | 3/4 | Analyze → |
| VEDL Vedanta Ltd. | Metals & Mining | ₹702.4 | 271,674.21 | Mid Tier | 3/4 | Analyze → |
| HINDZINC Hindustan Zinc Ltd. | Metals & Mining | ₹624 | 264,695.11 | Mid Tier | 3/4 | Analyze → |
| HINDALCO Hindalco Industries Ltd. | Metals & Mining | ₹965.3 | 217,565.23 | Mid Tier | 3/4 | Analyze → |
| EICHERMOT Eicher Motors Ltd. | Automobiles & Auto Components | ₹7,936.5 | 212,399.87 | Mid Tier | 3/4 | Analyze → |
| TVSMOTOR TVS Motor Company Ltd. | Automobiles & Auto Components | ₹3,878.5 | 184,305.29 | Mid Tier | 3/4 | Analyze → |
| LTIM LTIMindtree Ltd. | Software & Services | ₹5,186 | 164,939.22 | Mid Tier | 3/4 | Analyze → |
| BANKBARODA Bank of Baroda | Banking and Finance | ₹289.25 | 150,590.07 | Mid Tier | 3/4 | Analyze → |
| PIDILITIND Pidilite Industries Ltd. | Chemicals & Petrochemicals | ₹1,490.1 | 150,357.07 | Mid Tier | 3/4 | Analyze → |
| TRENT Trent Ltd. | Retailing | ₹4,274 | 149,265.65 | Mid Tier | 3/4 | Analyze → |
| BRITANNIA Britannia Industries Ltd. | FMCG | ₹6,086.5 | 146,014.36 | Mid Tier | 3/4 | Analyze → |
| PNB Punjab National Bank | Banking and Finance | ₹120.8 | 141,593.06 | Mid Tier | 3/4 | Analyze → |
| UNIONBANK Union Bank of India | Banking and Finance | ₹180.79 | 137,389.63 | Mid Tier | 3/4 | Analyze → |
| TORNTPHARM Torrent Pharmaceuticals Ltd. | Pharmaceuticals & Biotechnology | ₹4,090 | 137,290.38 | Mid Tier | 3/4 | Analyze → |
| PFC Power Finance Corporation Ltd. | Banking and Finance | ₹410.3 | 136,624.21 | Mid Tier | 3/4 | Analyze → |
| CANBK Canara Bank | Banking and Finance | ₹144.7 | 132,159.39 | Mid Tier | 3/4 | Analyze → |
| BSE BSE Ltd. | Banking and Finance | ₹3,140 | 129,144.99 | Mid Tier | 3/4 | Analyze → |
| INDUSTOWER Indus Towers Ltd. | Telecom Services | ₹472.85 | 123,268.16 | Mid Tier | 3/4 | Analyze → |
| ABB ABB India Ltd. | General Industrials | ₹5,795 | 122,970.44 | Mid Tier | 3/4 | Analyze → |
| SOLARINDS Solar Industries India Ltd. | General Industrials | ₹13,397 | 121,645.84 | Mid Tier | 3/4 | Analyze → |
| INDIANB Indian Bank | Banking and Finance | ₹881 | 121,233.49 | Mid Tier | 3/4 | Analyze → |
| CUMMINSIND Cummins India Ltd. | General Industrials | ₹4,440 | 121,200.16 | Mid Tier | 3/4 | Analyze → |
| HDFCAMC HDFC Asset Management Company Ltd. | Banking and Finance | ₹2,840 | 120,950.04 | Mid Tier | 3/4 | Analyze → |
| ASHOKLEY Ashok Leyland Ltd. | Automobiles & Auto Components | ₹210.99 | 120,925.04 | Mid Tier | 3/4 | Analyze → |
| POLYCAB Polycab India Ltd. | Consumer Durables | ₹7,764 | 117,187.65 | Mid Tier | 3/4 | Analyze → |
| HEROMOTOCO Hero MotoCorp Ltd. | Automobiles & Auto Components | ₹5,725.5 | 113,921.13 | Mid Tier | 3/4 | Analyze → |
Important Notes
- ⚠️ Annual rebalancing: Magic Formula is designed for 1-year holding periods with annual portfolio rebalancing.
- ⚠️ Portfolio size: Greenblatt recommends holding 20-30 stocks from the top-ranked list for diversification.
- ⚠️ Data methodology: Earnings yield calculated as inverse P/E ratio. ROE used as proxy for ROIC. Annual growth rates used until 3+ years of historical data accumulated. Data updated quarterly from Trendlyne.
- ⚠️ Tax implications: Annual rebalancing may trigger short-term capital gains tax. Consult a tax advisor.
- ⚠️ Professional advice: This screener is for educational purposes only. Consult a SEBI-registered investment advisor before making investment decisions.